Hi,
If I pay life insurance premium of policy in the name of my brother, then will deduction under Chapter VI A available to me? The policy was taken by him and first 2 yearly permiums were paid by him and thereafter claimed as deduction under chapter VI A. But now he is unable to pay the premium so if I pay the premium amount instead of him then can I take the benefit of such payment?
Hey Sakshi,
In case of Individual, deduction under Section 80C is only available in respect of policy taken in the name of the individual, his/her spouse or his/her children.
Policy in your case is in the name of your brother, hence cannot be claimed by you.
Hope it Helps
Regards,
Vaisakh
As per the provision of section 80C of income tax act, an individual can invest in life insurance policy;
1. On his/her own life
2. On the Life of spouse
3. On the life of Any child (child may be married/unmarried, male/female, minor/major)
In the case of Hindu Undivided Family the life insurance policy can be taken in the name of any member of the family.
Deduction under section 80C of income tax act is available only when you make the payment or deposit the life insurance premium. All the above benefits of getting deduction for life insurance premium paid shall be reversed if the policy terminated or cease to be in force within 2 years after the date of commencement of such insurance policy.
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