Ask Value Research

Can a father claim a tax rebate on LIC premium paid by an NRI son?

Let's understand the terms under which NRIs can claim tax rebate on insurance premium

Can a father claim a tax rebate on LIC premium paid by an NRI son?

My son is an NRI having NRO and NRE account. Can I claim tax rebate on LIC premium if the premium is paid from his NRO account - Anonymous

Many non-resident Indians (NRIs) wonder whether they can avail tax benefits under Section 80C on premiums paid for LIC.

Any amount that you pay towards life insurance premiums for yourself, your spouse or your children, they can be included in claiming the Section 80C deduction.

However, the premiums paid by you for your parents or your in-laws are not eligible for deduction. Nor can your parents claim tax benefits for premiums paid by you.

So, the father cannot claim any deductions for LIC premiums paid by the son. But if the father has paid the premiums for his son from his account, then yes, he's eligible for claiming the same.

Since the son has paid LIC premium from his account, the father cannot claim any tax benefit.

But it is important to note that NRIs can avail tax rebates up to an extent of Rs 1.50 lakh. But only if the income is earned, received or accrued in India.

For example, if you have an income that is generated in India through your business or an investment, you can use those proceeds to pay the premiums. This payment can be claimed for your deduction.

Suggested read:
Invest through NRE account or NRO account?
What to do with your investments when you become an NRI?

Have a different question in mind? Ask us


Other Categories