My wife who is a senior citizen has a Mediclaim policy. I am the proposer. This time my daughter made the payment by credit card for premium to avail 80D benefit. However, the premium receipt is in the name of my wife only. Insurance company is refusing to issue a premium receipt in my daughter's name. Please let me know what should be done to get a premium receipt in my daughter's name at least next time. Can she claim 80D benefit as her credit card statement shows debit?
Ans: Under section 80D of the Income Tax Act, 1961, the premium paid is eligible for tax deduction up to an amount of Rs 50,000 for senior citizens. The policy can be in the name of oneself, one’s spouse, or one’s parents who are not dependent and also dependent children.
To get the receipt in the name of your daughter she should be the proposer for the policy that covers your wife.