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A Hindu undivided family pays life-insurance premiums on the lives of (i) the karta, (ii) an adult coparcener, (iii) the wife of a coparcener, who is a member of the family, and (iv) the…

Question and options

A Hindu undivided family pays life-insurance premiums on the lives of (i) the karta, (ii) an adult coparcener, (iii) the wife of a coparcener, who is a member of the family, and (iv) the father-in-law of a coparcener, who is not a member. On whose lives do the premiums qualify under section 123 and Schedule XV of the Income-tax Act, 2025?

  1. (ii) and (iv) only

  2. (i), (ii), (iii) and (iv)

  3. (i), (ii) and (iii) only

  4. (i) and (iv) only

Answer and explanation

Correct answer: C - (i), (ii) and (iii) only

Paragraph 1(a)(ii) of Schedule XV allows a Hindu undivided family the premium on the life of any member of the family. Membership, not coparcenary status, is the test, so the wife of a coparcener is covered along with the karta and coparceners. A relative who is not a member, such as a coparcener's father-in-law, is not covered.

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