I have taken a pansion Plan for my Mother i Want to know that can i take credit of this under 80CCC
12 Replies
CA Namita Ganatra
(Self)
(70 Points)
Replied 01 December 2009
In the section it is nowhere written whether the pension plan is to be taken for individual himself or for any dependents. In the absence of such instruction it is safer if one doesn't claim benefit.
One thing is to be noted in this respect that Sec. 80CCC benefit is available to individuals only and not to HUF contrary to Sec. 80C. Had HUF been permitted than benefit for relatives would have been there.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 01 December 2009
yes, deduction can be claimed provided the premium should be paid by you.
regards,
ratan
Harshal
(Article Assistant )
(182 Points)
Replied 01 December 2009
Dear Ratandeep
I wanna knw hw cn he claim deduction under 80CCC for pension plan of his mother....
Pls support ur answer...
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 01 December 2009
yea guess it doesnt say its allowed if u pay it for your relatives i guess....the act is silent abount tat...
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 01 December 2009
The Section does not specified about above particular point but as per my opinion pension plan for parents can be claimed provided they should paid by the assessee and parents should be dependent on him.
regards,
ratan
Shashi Bhushan
(Learner, Jalandhar)
(996 Points)
Replied 01 December 2009
If it is not written that it is allowed for member of household or not then how can one claim it as deduction.
it is also not written that it can not be claimed for pension of friend. now it doesn't mean that you can claim for friend because Act is silent.
silent about family means you can not claim.
But if you claim this hardly any problem will arise bcoz ITO will hardly come to know about this. but actually this is not allowed.
Dhruv
(Chartered Accountant)
(308 Points)
Replied 02 December 2009
You can't claim it, as per the Act, however, Shashi Bhushan is right that they hardly notice a deduction like this, but the pension when it is received is taxable, and it will be taxable in the hands of the person who is receiving the pension, so it's better the person themselves to claim deduction so that the entire transaction becomes tax neutral.
sanjeev
(Manager- Accounts/Tax/Finance)
(229 Points)
Replied 02 December 2009
Dear,
Section 80 CCC in not exhaustive. So when there is nothing mentioned regarding the allowability then nobody can claim the same.
So it is not permissible to claim the benefit u/s 80CCC.
Best
Sanjeev
CA PRAVEEN KESHAV
(CHARTERED ACCOUNTANT)
(331 Points)
Replied 02 December 2009
no, u can not take the credit u/s 80 ccc
Raj Kumar
(CA in Practice)
(22 Points)
Replied 02 December 2009
Yes, you can get the benefit of this section (80CCC)
- If U have deposited this amount from your taxable income (Calculated under the Income Tax Act.)
- Surrender value received shall be taxable in the year of receipt in the hands of the recipient or in the hand of assessee.
- Amount paid or deposited to LIC or any other insurer.
Note: The amount of deduction can not exceed the maximum limit of.
Rs. 1, 00,000.00 u/s 80CCE
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