CAN ANYONE TELL ME WHETHER LIC PREMIUM PAID BY ASSESSEE'S FATHER (BANK ACCOUNT) IN HIS OWN CAPACITY ALLOWABLE AS DEDUCTION IN ASSESSEE'S INCOME (VI-A)
karan challani
(article)
(82 Points)
Replied 08 October 2010
yes but the assessee has to show his father as an creditor in his books.....it would be better if he payes his father in the same financial year.
prashantkumar
(CA final)
(96 Points)
Replied 08 October 2010
Hi,
i think it ll not be deductable in the assesses income As per It Act U/S 80C
as per KARAN
assessee shown his fother was a creditor in his account .
but d LIC documents Like premium slips ....etc ll be in d name of his fother not in d name of d assessee so as per my point of view
if d assesees fother is age old person nd wholly depending upon d assessee then only it ll be diducteble in d assessees income
but in the given case assesees fother had given the LIC in his individual capacity so no deduction ll be available to the assessee .
karan challani
(article)
(82 Points)
Replied 08 October 2010
as per the IT act any Premium paid by assesse for his father,mother,spouse and children is deductable from the Gross total income.THerefore he can claim deduction
Ganga
(CA Final)
(101 Points)
Replied 08 October 2010
hi thank u for the reply,assessee's father paid LIC Premium in the name of assessee and not in his name (assessee's name in lip receipt)
venkatraman shrinivas
(Tax consultant/Tax Advocate In Practice.)
(313 Points)
Replied 08 October 2010
LIP pai by you father is admissible as a deduction under section. Pl. refer o 80C(2)(i) and also 80C(4).. Earlier there was a provision that it has to be paid out of the income earned by an assessee only, But such a clause has been removed and the deduction liberalized.
Ganga
(CA Final)
(101 Points)
Replied 08 October 2010
THANK U, MY CONCLUSION Reg this topic
1,LIP Paid by son(assessee) to his father is not allowed as deduction
2,LIP Paid by father to his son(assessee) (Independent) is allowed as deduction
3 LIP Paid by father (assessee) to his son (Independent) is allowed as deduction
4,LIP paid by assessee to spouse,children(whether dependent or independent ) is allowed as deduction
5.LIP Paid by a Husband to Wife or vise versa is allowed as deduction in either of their assessments
6.LIP Piad by father to son is allowed as deduction in either of their assessments
Kindly reply me correctness of my assessments in LIP Chapter and notify any other probabilities
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