Whether deduction is available in respect of premia paid on the life insurance policies on the lives of adult children, irrespective of their status; for example, premia paid on a policy on the life of a married daughter

1. Section 80C of the Income-tax Act allows, inter alia, deductions while computing the total income of an assessee of any sums paid in the previous year by the assessee individual out of his income chargeable to tax, to effect or to keep in force an insurance on the life of the assessee or on the life of the wife, or husband, or any child of the assessee.  Representations have been received by the Board regarding the availability of relief under this section in respect of premia paid on the life insurance policies on the lives of adult children, irrespective of their status; for example, premia paid on a policy on the life of a married daughter.

2. It is hereby clarified that relief under the said sections is available in respect of such cases also.  This relief will continue to be available under the new section, introduced by the Finance Act, 1990, as the language of the new section is in pari materia with that of section 80C of the Act.

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Circular : No. 574, dated 22-8-1990.

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Category : Income Tax (25163)
Type : Circulars (7511) Notifications/Circulars (30306)

0 responses to “Circular No. 574-Income Tax dated 22/8/1990 [Sec 80C deduction available on Life Insurance paid for adult children /married daughter]”

  1. mahesh kumar kuldeep says:

    मैं सरकारी कर्मचारी हूँ | मैंने अपनी पत्नी के नाम से एक एल आई सी पॉलिसी कराई | उसमें प्रस्तावक के नाम में मेरी पत्नी का नाम लिखा गया जबकि भुगतान मेरे द्वारा किया जाता है और मेरी पत्नी गृहिणी है | क्या मेरे द्वारा कराई गई अपनी पत्नी की इस पॉलिसी पर टेक्स का फाइदा मिलेगा ?
    कृपया सुझाव दें |
    धन्यवाद !

  2. Rawal singh Bhati says:

    @Anand,

    Not allow , only payment for Husband wife or children [minor or major no restriction] read sec80C(4)

  3. Anand says:

    Dear All,

    Kindly explain if a Mother of a married daughter is paying the premium for the son of the married daughter i.e. maternal grandson, then will it be allowed for deduction under 80 C in the hands of the Mother or to say the grandmother ?

  4. Rawal Singh Bhati says:

    For every querry please write ur email or whatsapp no.

    Mine is: bhatirawal@yahoo.co.in
    Whatsapp:8963013175 [do not call only msz]

  5. Rawal Singh Bhati says:

    @Sridhar

    Ask your A.O to issue a notice u/s 148 , then you can file

    Warning: Please pay all of your tax and Interest amount then only go to A.O for requesting to issue notice [benefit of this step no penalty will levy ]

    Note: you may charge for penalty u/s271F a maxium Rs. 5000 only [ye bhi maaf ho sakti hai]

  6. Sridhar says:

    Dear Sir,
    A Partnership Firm has not filed the Income Tax Return (Tax Audit Case) for the assessment year 2013-2014 on or before 31.03.2015 due to conflicts between partners and changes in partners and digital Signature. How to file the Income Tax Return for the assessment year 2013-2014 now.

  7. Sumit Agarwal says:

    The line that it must be paid out of income chargeable to tax is not anywhere written in the sec 80C.

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