My maid’s husband passed away a few years ago. There was no insurance in the family. Subsequently, I bought a term life insurance policy on her with her only daughter as the beneficiary. I have been paying her premiums for the past 2 years. Can I claim any deduction on it?
—Shailaja Singh
The life insurance premium payment or contribution in the name of specified persons qualifies for tax deduction subject to the overall limit of Rs1.5 lakh per financial year (FY) under section 80C of the income tax laws.
The specified persons include self, spouse and any child of such individual. Since your maid is not covered under the definition of specified persons, you cannot claim tax deduction in respect of life insurance premium paid on her behalf.
