Urgent- income tax

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Believe in Yourself

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72 Points Posted on 23 March 2013

CAse:

A person gives cash to his son for insurance premium, the son deposit the cash in his personal bank account and issue a cheque to insurance company for premium of policy of his father.

Now my 1st query is that whether the father will get the deduction for insurance premium paid u/s 80C.

And 2nd query is that if the son pays the policy premium for his parents so will can get the deuction u/s 80C, parents or child.

Plz reply as early as possible..

Thanks in anticipation.

Replies (5)

CA. Dushyant ZALA

PRACTISING C.A.

79 Points Posted on 23 March 2013

1) In first situation father will not get deduction u/s.80 C since the payment is made by cheque by his son.

2)In second case, son can get deduction u/s. 80 C only if his father is dependent on him otherwise not

Believe in Yourself

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72 Points Posted on 23 March 2013

Thanks Mr. Zala

But as per deductions u/c VI A, its written in LIC premium that if you have paid it for self, spouse and children then deduction u/s 80c for premium paid is allowed, there is no reference of parents(whether dependant or not), so in that case if a son is paying insurance premium for parents then will it be allowed.

Because for sec 80D(mediclaim) parents is clearly written but not for insurance premium.