I have one query that whether Karta of HUF can gift Insurance policy from his HUF account to his daughter's son.i.e his grand son and if so whether any tax consequences arise in this case to both recipient and donor??
so in that case you can take the policy in his name and pay the premium till policy term goes on..the maturity proceeds of life insurance are fully exempt under 10(10D)
see if the policy is in your name then only you can claim tax benefit. so either you can remove policy in grandson name but no tax benefit will be available since grandson is not covered for tax benefit. else you can show him as nominee.
CAclubindia
