Lic deduction

If Mr A Paid his wife LIC in cash can he get benefit under section 80C.
Replies (12)
Lic Paid by Individual on the life of his/ her spouse is allowed as deduction. However deduction is subject to other facts like - Premium Amount wrt to Basic Sum Assured, Date of Commencement of such policy.
If he paid out of her income

Mr. A can claim benefit of amount paid to LIC for his wife if he pays money out of his taxable income and there is no restriction on cash payment.

Yes , benefit is available.

Yes he can if policy is a life insurance policy and not a pension policy.
Only mr. A can availed the deduction lic & A have submit their wife's declaration regarding " she is not availing the benefit of same policy u/s 80c"

Dear all,

(Sub - Availing deduction in alternate financial years)

 For the LIC premium paid for wife ( Say Mrs B)  Mr A can get deduction U/S 80 C for the current financial year.

It is also possible that in the next financial year wife of Mrs B can get deduction U/S 80 C in her own file.

S.Mukherjee CAIIB. MDRT (USA)

09.02.2016

Yes he can claim as per the provision of income tax Under section 80C.
Only for 80D Medical Insurance Premium the amount should be paid in Cheque

but if wife also earning then both can be avail deduction of same policy....because of payment made through cash ?

is there any rule policy payment should be made by Bank Transaction only. ?

For LIC premium there is no rule that it should be paid through bank transaction only. If can he paid in cash. 

You are right that when we pay in cash , it is difficult to determine that who has actually paid. But benefit can be availed only by one of them and not both.

Yes I agree with forum

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