Relief under section 80C of the Income-tax Act, 1961 - Income Tax - 574/1990

Relief under section 80C of the Income-tax Act, 1961 Circular No. 574 Dated 22/8/1990 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. (Sd.) Anand Kishore, Under Secretary to the Government of India