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Life insurance premium under section 80c

24 June 2019

if the payer and insured are two different persons and the payer pays the insurance premium from his own bank account then and is the insured eligible to take the deduction of the premium under section 80c. the insured is the spouse of the payer.

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8 Replies

sheela More (student) (333 Points)
Replied 24 June 2019

Payer is eligible for deduction of insurance premium paid for his spouse, if payment done by him.

5 Like

Ashwin Kumar (1229 Points)
Replied 24 June 2019

yes you can...under 80 c upto 150000

1 Like

rajesh chonjamam (22 Points)
Replied 24 June 2019

@ sheela_more the payment was made by the payer himself as it was made through his bank account but the policy receipt will have the name of the insured. so won't the insured be eligible to claim deduction?

sheela More (student) (333 Points)
Replied 24 June 2019

As per the policy terms insurer is her husband, so he is eligible for 80C benefit, when he pays to insure himself or any of his family member/s

2 Like

rajesh chonjamam (22 Points)
Replied 24 June 2019

@ sheela_more & @ ashwin_kumar .....suppose the insured is not related with the payer....they are just friends say A and B..the insured that is A is the assessee...but the payment was made by the assessee's friend that is B through B's bank account...think as if in practical scenario....then do u think it is right to claim this premium deduction by A in his return of income stating that the premium amount was given by A to B ?

Dipesh Jha (PRACTICE ) (673 Points)
Replied 24 June 2019

since the Money paid through Payer Bank account...the Insured is not eligible for deduction under section 80C of the income tax act,1961😊

rajesh chonjamam (22 Points)
Replied 24 June 2019

@ dipesh_jha suppose the insured is not related with the payer....they are just friends say A and B..the insured that is A is the assessee...but the payment was made by the assessee's friend that is B through B's bank account...think as if in practical scenario....then do u think it is right to claim this premium deduction by A in his return of income stating that the premium amount was given by A to B

1 Like

Kapadia Pravin (17249 Points)
Replied 13 November 2019

Here A (friend) is paying premium on behalf of B his friend. LIP payment will qualify under 80C in B's return.

The 80C section specifies for which relatives an individual can pay premium and get 80C Deduction in his own return.

Under 80C(2)(i) - specified persons -
(a) for the purposes of clauses (i) of that sub-section,—

(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and

(ii) in the case of a Hindu undivided family, any member thereof;