What revenue tax rule says on premium paid for all times insurance coverage coverage of partner

My spouse and me have life insurance coverage insurance policies of 25 lakh every. My spouse doesn’t have any revenue. Can I declare deduction u/s 80C in respect of the premium paid for her?.

Premiums paid by a person for all times cowl taken for self, partner, and kids are eligible for the deduction u/s 80C. So far as fee of premium for youngsters is anxious it isn’t crucial that the youngsters must be depending on you. So the kid for which you’ll pay the life insurance coverage premium will be main or minor, married or single. This can be utilized to optimise the tax outgo within the household because the incomes youngsters have so many eligible objects like faculty price and reimbursement of house mortgage beneath Part 80 C that in many of the instances these things overflow their bucket of part 80 C whereas the dad and mom specifically the retired would not have many avenues to say deduction beneath Part 80C. To allow them to pay the life insurance coverage premium on the lifetime of their incomes youngsters which in any other case would haven’t been eligible for deduction of their palms. Please be aware the youngsters cannot declare deduction for fee of life insurance coverage on the insurance policies of their dad and mom however can declare deduction beneath Part 80D for fee of medical insurance premium even when the dad and mom should not depending on the kid.

Let me let you know the aim of shopping for life insurance coverage is to guard the dependent relations within the eventuality of incomes member of the family’s loss of life and may by no means be purchased for the aim of saving taxes. Since your spouse doesn’t have any revenue, you shouldn’t have purchased any life insurance coverage coverage on her life and it will make extra monetary sense so that you can have taken a coverage of 50 lakh in your life as a substitute of distributing the duvet, until there are some legitimate causes to take action which I’m not in a position to respect.

(Balwant Jain is a tax and funding professional and will be reached on [email protected] and @jainbalwant on his twitter deal with)

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