Exemption for multiyear health insurance policy

You can claim 80c exemption on a monthly basis because your tax liability is not as big amount as policy price

Forgot to mention, there is threshold on aggregate deductions which is not possible to the whole in a month

@ Mr Rahul gross pay-allowance-80c deductions is taxable income and multiplied by tax rate is your income tax. So it’s monthly only. 

please do not give random replies!!

@ rahul - The deduction for 80D is on payment basis ie deduction will be allowed in the year in which the payment is made. Hence, no option for apportioning it over years.

@ Yasaswi - the query is about 80D instead of 80C. Even then, 80C deductions are on payment basis. If it is paid in one go, it is accounted like that only. Taxation is never done on monthly basis. the TDS provisions are not be equated with taxation provisions. 

It's a mystery why payrolls deduct monthly income tax in payslips. 

I remember it like 

Basic+HRA+Allowances+special allowance= gross pay/CTC and minus standard deductions. It's correct that only one time all sections will reduce annual taxable income. That amount is divided by months. If tax is paid annually companies have a good reserve from that as well. Then why is it printed on monthly payslips like that? Maybe accruals.