Say, an assessee pays Rs.150000/- towards LIC premium and other investment avenues available under Sec 80C.
Until A.Y.2005-06 there was a clause that the payment has to be made out of income chargeable to tax. However, this is not the case from A.Y.2006-07.
So my query is, whether the excess Rs.50000/- can be availed by assessee’s wife in her income tax return as deduction under Sec 80C. The assessee would debit the excess Rs.50000/- to his wife’s account in his books and would show that as amount receivable from her. Is it valid in the current scenario when there is no restriction on payment out of income chargeable to tax?
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