80 c eligibility

This query is : Resolved

s joseph (Querist)
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22 August 2011 MY Dad purchased one Lic policy of 20 Lac for me and premium comes Rs. 1.26 Lac per annum the instalments paid half yearly and it comes Rs. 63k

If my father pays 1st half and mother pays 2nd Half premiums in every year (Both are filing income tax return separately) and would like to take the exemption u/s 80C

Is it right

please advise

Thanks nd regards

Joseph

CA Navin Jain

CA Navin Jain (Expert)
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22 August 2011 BOTH, FATHER AND MOTHER CAN CLAIM THE EXEMPTION ON THE BASIS OF PAYMENT

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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22 August 2011 According to my knowledge 80C provides an individual can claim deduction u/s80C for the premium payment of LIC for self or spouse or childrens from their source of income only. In your case if payment made from the source of income of your father then only he can claim or if from mother then only she can claim. If u want to get half of the deduction to father and the balance to mother then the same premium should be paid by their's source of income only and however u have to give the clear explanation to the Assessing officer and has to prove the payment met by themselves only. However the case is very criticle anyway better and safe to make premium payments through cheque from their accounts individually. But the case aceptance is depending on the Assessing officer. My suggetion is better to claim for only one person only.
OM SAI SRI SAI JAI JAI SAI

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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22 August 2011 In simple words Both the persons can claim deduction depending on the payment from source of income but we has to prove from which source the premium made with evidence in case any explanation required by the AO so better to make payment through cheques of each individuals for each payment
OM SAI SRI SAI JAI JAI SAI