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Lic payment u/s 80c

swohra (none) (537 Points)

08 April 2014

If "A" pays LIC premium of his son outof his own income & wants to claim this sum in the return of his son. Whether his son can claim such payment outof his salary inocome even he dint pay that LIC premium ??

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14 Replies

DINU SUKUMAR (Audit Manager) (176 Points)
Replied 08 April 2014

Hii Sir,

In my view, in this case son can claim the LIC premium paid only if father not.

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CA SONIYA AGARWAL (self practice) (3005 Points)
Replied 08 April 2014

SON CAN CLAIM DEDUCTION ONLY IF SON PAID THE PREMIUM , HERE SINCE FATHER PAID THE PREMIUM FATHER WILL GET THE DEDUCTION

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DINU SUKUMAR (Audit Manager) (176 Points)
Replied 08 April 2014

son can claim the amount. LIC premium is a personal expenditure, so the assessing officer cant disallow the amount.

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 08 April 2014

only father is eligible to take benefit u/s 80C for LIC premium paid for his son

son can not take benefit for the same

1 Like

DINU SUKUMAR (Audit Manager) (176 Points)
Replied 08 April 2014

Agreed with above. LIC premium is paid in the name of son. Cash or bank transactions between son and father is nowhere taxed under IT Act. Regards

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Shivang Chokshi (C A ) (182 Points)
Replied 08 April 2014

Son can claim.. money paid by father can b shown as loan in son's books or as gift..

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 08 April 2014

Mam Shivangi this transaction is possible through gift but for that one need to prepare gift deed.

still in that case it looks like a adjustment and not safe.

hence i would not suggest to shown as loan or gift.

Rupesh Soni (Taxation Consultant & CA final student) (504 Points)
Replied 08 April 2014

Yaaa...Son can claim Only if The trasection trated with book adj entry...i.e Loans transaction.entry...In father's books -Loan to son debit....

Rupesh Soni (Taxation Consultant & CA final student) (504 Points)
Replied 08 April 2014

Soooo better to traet as loans...nd repay by cheque

Intermediate Student (-) (644 Points)
Replied 08 April 2014

I have paid lic premium of my FRIEND of Rs. 25221 through internet banking from my a/c. Then my friend gave me cash. Can he take deduction u/s 80C.

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Sudhakar (Asst) (31 Points)
Replied 08 April 2014

Son cannot claim deduction as per me.

DINU SUKUMAR (Audit Manager) (176 Points)
Replied 09 April 2014

Hii Adjustments according to the law is safe.Best regards.

Ramanuj (Accountant.) (834 Points)
Replied 09 April 2014

Dear All

I think LIC paid by father. Both can claim u/s 80C. Its is not any place written that LIC premium paid should be Personal a/c. Only u/s 80D as mediclaim should be own a/c other than cash. so both can claim. only one person can claim son or father its depended own.

Thanks

Ramanuj