My daughter got married recently. I had taken some life insurance policies, for her, before marriage. Unfortunately, my son-in-law in not very keen to continue these policies. My daughter is not earning and hence she is not in a position to pay the premiums on theses policies. Can I continue to pay the premiums to maintain the policies? Whether I would get any Income tax benefit on these premium payments?
Ans: You can continue to pay the premium on the policies of your daughter. There are no restrictions of any nature on the payment. Also it would not be covered by any Gift Tax Provisions since you have blood relation. As per section 80-CCC you can pay premium on your policies, wife policies or child policies. Child may be dependent / independent, male or female child, minor / major or married / unmarried. Hence, the premium paid by you on the life insurance policies of your married daughter would qualify for Income Deduction under section 80-CCC.
I would like to know, whether it is possible to gift some articles to the employees? If yes, then is there any monetary ceiling prescribed? Whether this gift is taxable in the hands of recipients or is it tax free?
Ans: Yes, it is possible to offer gifts to your employees on certain occasions. The expenses incurred for the purpose of gift would be an admissible expenditure for the business. The limit prescribed for the purpose of gift to the employees is Rs.5,000/- in one year. If the value of gift does not exceed Rs.5,000/- it would not be taxed in the hands of the employees. If the value of gift exceeds Rs.5,000/- in one year, then the excess amount of over Rs.5,000/- would be taxed as a perquisite.
I have a beautiful temple situated in my colony. I visit the temple very often and love to spend some time over there. Recently I have donated a sum of Rs.10,000/- to the temple for its upkeep and maintenance. Whether this donation would fetch any Income Tax Deduction?
Ans : Donation to a temple would qualify for Income Tax Deduction only if the temple is a registered institute with the Income Tax Department and also it has applied to the Department for exemption of donation under section 80-G. If the institute is not registered or the institute has not obtained 80-G registration, then the donation would not fetch any income tax relief.
(The Author is a CA and specializes in taxation matters. He is a Senior Partner at the leading Chartered Accountancy firm, AD & Company)
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