Which Investments In Your Family Member’s Name Save Tax For You?

I bought a ULIP from HDFC in my spouse name & I want to claim rebate us 88 as my wife is a homemaker and do not have any source of income,thus do not file any return.I am the primary nominee of the policy and have paid the check from my bank account.Can I claim the rebate by giving a declaration of the above statement. Please suggest as I am in deep trouble. Sanjay Chakraborty, Kolkata

I want to know if i can avail tax benefit for a LIC premium which has been paid by me for my husband. The insured person is my husband. Asha Gautam, Navi Mumbai

Answer to both of you : YES.

I find that aforesaid question is appropriate as the month of March is very near.Everyone is busy computing their income tax liability. Therefore, I find only appropriate that the aforesaid questions should be answered in detail.

Under the I T Act, as far as investment is concerned , maximum deduction one can avail of Rs 1 lakh . This is under section 80C of the I T Act. Following investments done in family member’s name are eligible for consideration for deduction u/s 80C.

1. Life Insurance .
2. Deferred annuity plan
3. Public Provident Fund
4. ULIP of UTI or LIC

Only for aforesaid investments , an individual is eligible to get deduction to the extent he made investment subject to maximum amount Rs 1 Lakh.

Who are the family members?

The meaning of family members have been defined under I T Act. As per subsection 4 of section 80 of the I T Act , for an individual

1. Individual himself.
2. His wife.
3. Any of his children.

What about tuition fee?

Yes, an individual gets deduction u/s 80C for tuition fee paid for TWO children of him . The tuition fee provision given under Clause xvii is as under

(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,

(a) to any university, college, school or other educational institution situated within India;

(b) for the purpose of full-time education of any of the persons specified in sub-section (4);