How to write a letter to claim husband LIC policy by wife for tax deduction?

As per the Income Tax Act, 1961, the provisions of Sec. 80C with respect to claim deductions of Life Insurance Premium are as follows:

In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one hundred and fifty thousand rupees.

(2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee—

  (i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);

Sub Section 4 further states as:

(4) The persons referred to in sub-section (2) shall be the following, namely:—

 (a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-section,—

  (i) in the case of an individual, the individual, the wife or husband and any child of such individual, and

 (ii) in the case of a Hindu undivided family, any member thereof;

In easy language, Income Tax Law allows the above persons to claim deduction under sec. 80C for investment in Life Insurance 

Hence, if someone wants to claim a deduction with respect to the premium paid for spouse's LIC policy, Following points should be noted

• You do not need to write any letter anywhere to anyone for claiming this deduction

• Pay premium through by cheque or online payment through your own personal saving account

• The deduction can be claimed only be one person at a time, e.g. if the premium paid in the year 2019-20 was 1 lakh rupees then either husband or spouse can claim the deduction, not both 

• While filing your income tax return you should give full details of your policy and mention that policy is in the name of the spouse against which you are claiming the deduction

For any further assistance, you may call +91-9855583098 for any queries or assistance in filing your income tax return

Regards

Gourav Kapoor
 Founder
 CA Passion