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POSTED BY ON May 30, 2013 3:19 pm COMMENTS (13)
Hi All,
I have exhaust my 80c, thus my wife makes cheque payment to lic for the policies on my name. so that she can claim at the end for tax saving purpose. I am told this is the only right way to do it. Let wife pay to lic by cheque & get receipt, even through receipt is on my name she can claim it as deduction is done from her bank account.
Is there a possibility for her to claim under 80c even though I have made payment ? ofcourse I’ll not be claiming same. I just want to get rid of cheque payments by wife, instead I’ll pay online as usual.
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Dear Sir/Madam,
I am writing this query as I am looking for certain information related to Income tax rule/act under which if a earning husband can do payment for the LIC policy premium and/or PPF account contribution which are in the name of his earning wife/spouse.
Me and my both are earning and filling the Income Tax return every financial year.
My net earning for a financial year is above Rs. 12 lakhs per year and I do the yearly saving as LIC policy premium and PPF account contribution to avail the deductions (under 80C , etc) while filling the income tax returns.
Similarly my wife’s earning is between Rs. 3 to 4 lakhs per year and she do the yearly saving as LIC policy premium and PPF account contribution to avail the deductions (under 80C , etc) while filling the income tax returns.
Now i want to know if i can pay for my wife’s LIC policy premium and PPF account contribution from my ‘Bank Account’ via cheque or net-banking and only my wife will claim for deductions under Income Tax rules (under 80C , etc), as the LIC policy and PPF account is in the name of my wife only. Can this be done and if this is legally valid scenario?
I would appreciate it, if we have any inputs.
I dont think she will be able to claim it if you make the payment
My question is , if a earning wife pay the prem for her earning husband. Will she be able to show that prem to get 80c benefits ?
Of course husband wont show that prem in his IT Declaration.
Earning husband has multiple other insurance prem and other things ( PF, PPF ) to show in 80c.
Is this okay or do you see any legal voilation here ?
No, it will not be allowed !
sir,
can i know the exact rule position where it is mentioned in sec 80c that payment of premiums on behalf of spouse can be claimed under tax deductions??
I cant find the documents as of now
Tax benefit for life insurance premium under section 80C can be availed only by Policy Holder.
Thanks Ashal,
You have cleared all my doubts.
Dear Dhaval, the warning you are referring to is to prevent money laundering. As per RBI & IRDA guidelines, spouse accounts for each other’s policies as well as parent’s accounts for children’s policies are allowed for prem. payment.
Thanks
Ashal
Hi,
Thanks for the clarification,
actually following warning makes me confused. I’ll try with online payment from wife’s account. Thanks.
“Premium should be paid on the Policy owned by you only. The Digitally signed receipt will be issued in the Name of Mr./Mrs.dhaval thakar”
Dear Dhaval, online payment from wife’s bank account is allowed.
Thanks
Ashal
Thanks for the answer,
In that case what if I make online payment using my wife’s bank account? Is that valid?
Asking this because lic recommends payment tobe made from the policy holder account.
Dear Dhaval, the present system of wife paying prem. is the only way if she wants to claim the tax benefit. She can not claim tax benefit if you pay your own prem.
Thanks
Ashal