Dear Sir(s),
Please tell me about the tax rebate u/s 80C on NSC purchased in name of Spouse/Children.
Thanking You.
Regards'
Vineet k. vaish
36 Replies
Sanket Damodar Karve
(Business)
(179 Points)
Replied 23 March 2010
Dear Vineet,
NSC in the name of spouse & childern is not allowable for deduction u/s 80 C.
The same is the opinion of one of the CA.
Regards
ABHINAV SURELIA
( CA & CS)
(92 Points)
Replied 23 March 2010
Mr. vineet
an assessee can get deduction u/s 80C, if NSC is purchased in the name of his children or spouse.
provided the income of children or spouse should be clubbed with the assessee's total income.
and deduction is provided on payment basis only.
Rachit
(Analyst)
(913 Points)
Replied 23 March 2010
80C(2)(ix) is silent on availment of deduction in respect of subscripttion to NSC in the name of spouse and children, unlike 80C(2)(v) - contribution to PPF, where in it specifically clarifies the availability of deductions in case of contributions to the specified accounts of PPF and 80C(2) (i) LIC premiums, 80C(2)(xi) - ULIP investments
In view of the above I am of the view that subscripttion to NSC in the name of spouse / children would not be eligible for deduction u/s. 80C.
ABHINAV SURELIA
( CA & CS)
(92 Points)
Replied 23 March 2010
Dear vineet,
plz confirm it form another user also.
as my and sanket's answers are contrary.
i also want to know its answer.
Sanket Damodar Karve
(Business)
(179 Points)
Replied 23 March 2010
Dear Vineet
There are contrary views on the said question. However the law is silent as rightly said by Rachit.
Wait for others to reply.
My answer is based on the practice what we generally follow.
Regards
Vineet Vaish
(Service)
(222 Points)
Replied 23 March 2010
Please can anybody tell me if the NSC is purchased in name of minor child.............
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 23 March 2010
yes, Mr. Vineet.............deduction can be claimed for NSC in named of spouse or child.......bt it may be noted that payment should be made from the Assessee's a/c.
Amir
(Learner)
(4016 Points)
Replied 23 March 2010
Dear Friends,
Agree with Richa,
Below is the extract from a very old circular - Pls note the crossed through text doesnot is not valid in present scenario.
Person to whom deduction is admissible - The deduction under section 80C can be claimed by the person who has contributed the monies out of his income chargeable to tax. It can be claimed by the first-named person in a joint holding if the first-named person has so contributed the amount.
The deduction under section 80C is to be given to the person who has purchased the NSCs out of his income chargeable to tax.
The interest accruing on the subscripttion to the NSCs will be included in the hands of the person who has subscribed from his income chargeable to tax.
The amount of interest re-invested will satisfy the test of having been paid out of income chargeable to tax to get the NSC and so will be entitled to deduction under section 80C.
Where subscripttion to the NSCs in the name of any member of the HUF, is shown by the family to have been made out of its income chargeable to tax and the beneficial ownership in such certificates vests in the family, the family would be entitled to a deduction under section 80C with reference to such contribution.
The interest accrued would be included in the hands of the persons who purchased the NSC out of their income chargeable to tax.—Circular : No. 405 [F. No. 178/1/84-IT(A-I)], dated 15-1-1985 as corrected by Circular : No. 418 [F. No. 178/1/84-IT(A-I)], dated 2-5-1985.
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 23 March 2010
one more thing u have to notice that spouse or child should be dependent on the assessee and both do not file their personal returns..............otherwise it can be allowed if spouse's income is clubbed with the income of assessee.
if someone thinks m wrong,then pls correct me.
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 23 March 2010
one more thing u have to notice that spouse or child should be dependent on the assessee and both do not file their personal returns..............otherwise it can be allowed if spouse's income is clubbed with the income of assessee.
if someone thinks m wrong,then pls correct me.
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 23 March 2010
Mr. Amir i have to ask u a question that if a person has no other income except agriculture income,should all that income (more than 5000) be exempted.
Amir
(Learner)
(4016 Points)
Replied 23 March 2010
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 23 March 2010
thanks Amir.....................can u do me a favour pls????????
i have to ask some more questions from the users of CA club, bt i m new for this site,,,,,,,pls tell how can i conversate with others so i can get my answers soon.......
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