Deductions under Chapter VIA

This query is : Resolved

Rajat (Querist)
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06 April 2009 Mr X with virtually no income recd 5 lac from LIC which is fully exempt u/s 10(10D)

However tax liability appeared due to clubbing provision as minor son earned an income of 3 lac in that year.

Can Mr X claim deduction under Chapter VIA (80C, 80D, 80G) by depositing money recd from LIC.

In short, does Chapter VIA provide that deductions will qualify only if it is made from taxable income.

Could anyone pls clarify?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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07 April 2009 He can invest money which he received from LIC in investments of Chapter VIA and can claim the deductions.

It is not required that the same income should be deposited.

Matching priciple is not required to be followed for claiming the deduction.