Who can claim deduction 80c

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2013 Please Answer the following cases :

A. Mr. X Pays the premium of Mrs. X, Can Mrs. X Take the Deduction ?

B. Mr. Y pay the premium of his son. can Son take Deduction. Does answer Changes if son is dependable or not.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 June 2013 Deduction u/s.80C can be claimed who is actually made the payment from their taxable income. so in 1st case only Mr. X can take the deduction

2nd case father paid son`s premium, so father can take deduction u/s.80C

Whether son is dependent or not, father is eligible to claim deduction for son`s premium paid by him

Ganeshbabu K

Ganeshbabu K (Expert)
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09 June 2013 In my opinion

A)Mrs.x can take deduction provided premium receipt is in her name

B)Son can take deduction provided premium is in the name of son.

Actually i have not found/not aware that any condition in 80C that premium payment has to be done from the assesse income.

Even the said condition is available in section we can convince the department by saying those premium payments by Mr.X and Mr.Y are loan taken by Mrs.X and Son respectively.

Thanks & regards
Ganesh babu K

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 June 2013 @ Ganesh Babu

Of course section 80C has the option to claim the premium paid on behalf of spouse & children, mutual understanding & receipt in the name of the assessee can be claimed

But the actual purpose & objective of the section 80C or any other deductions under chapter VI-A, for claiming deduction, assessee should have the taxable income & the amount of deduction need to be paid by out of the taxable income

Relevant extracts from the section.

(2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee—
(i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);
(ii) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan referred to in clause (xii), on the life of persons specified in sub-section (4):

with the above extract, section clearly stated assessee paid or deposited

so, still I feel my view is correct as per law.

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Ganeshbabu K

Ganeshbabu K (Expert)
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09 June 2013 @ cma ramakrishnan

Dear sir,

Please clarify my doubts on this issue.

Please let me know is it possible or not possible to claim 80C deduction as i said above .

we generally claim 80C in itr and for employer we provide premium receipts so..

is it not a proper reason that Mr.X and Mr.Y paid premium amounts to assesse as a loan..

my one more question is who will ask us that from whose income it is paid out where premium receipt is there in name of assesse if it is in bank account statement is it not possible to escape by saying it as loan given

I may be wrong ,..Please clarify..

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 June 2013 Ramesh Ji

The erstwhile section 80C has a condition that investment should necessarily be out of'taxable income'.
But the present section 80C which has become effective w.e.f. 1st April, 2006 do not have such a condition ,meaning thereby the source of investment can be other than from current year's income.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 June 2013 @ Chackrapani Warrier sir

Thanks for the updation.

@Ganeshbabu ji

My 2nd reply itself i have told option is there to claim based on mutual understanding and name of the receipt.

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2013 So Finally
Is the Conclusion is this.

That anyone can claim deduction but subject to fall in the Term Family ?

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