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Lic investment

Lakshmi (Article) (166 Points)

09 March 2016

Hello friends can karta of HUF invest in lic of the members (Independant sons) ? will he get deduction under 80C? Age of Karta is 72 years son of karta age is 45 years Son is not dependant on his father Please guide

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3 Replies

Ruchi (CA) (1410 Points)
Replied 10 March 2016

If investment is made out of funds of HUF , then HUF can claim deduction u/s 80C as HUF can claim deduction if it makes payment of life insurance premium on the life of its members. Here age of karta or members is not relevant.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 11 March 2016

Agree with ruchi

To claim this tax deduction under section 80C the HUF can take out Life Insurance Policies in the name of its members and make payment of the premium which will enable the HUF to claim tax deduction as per section 80C.