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Tax planning u/s 80C

CA J.Alamelu lakshmi (Chartered Accountant) (852 Points)

11 August 2010

Can an individual claim deduction u/s 80C in respect of LIC premium on life of son where payment of premium has been made from the son's bank account ?

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11 Replies

CA Pratik Dharod (Bussiness) (178 Points)
Replied 11 August 2010

Yes, an individual can claim deduction u/s 80C , if his son is minor.

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CA J.Alamelu lakshmi (Chartered Accountant) (852 Points)
Replied 11 August 2010

Payment of LIC Premium Paid by Major Son on his life. Can father claim in his tax return as the father

has reimbursed the son for the same?

Kanchan M Mangaonkar (Student) (40 Points)
Replied 11 August 2010

Father can not claim the deduction. If clubbing provision is applied then only father can claim deduction of his major son u/s 80C.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 11 August 2010

Yes, agree with Kanchan. As deduction under Section 80C is allowed on payment basis. So the deduction will be available to the person who is making the actual payment.

CA Narendra Gupta (CA ) (256 Points)
Replied 11 August 2010

hi,
LIC premium paid even for major son can be considered u/s 80c.
Main criteria is that who has paid the premium.
If son has paid and he is minor so if clubbing is applicable than father can claim.
If he is major he can only claim and no other than him can claim (if he has paid than).

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satyabrata rath (audit associate) (22 Points)
Replied 11 August 2010

I AGREE WHEN CLUBBING PROVISION

R.S.G. (student C.A. final b.com m.com) (41 Points)
Replied 11 August 2010

hi,

payment through son's bank account is not allowed as deduction u/s 80C

it is clearly mentioned u/s 80C that the payment for LIC for dependent childrens is allowed as deduction only when the payment is made out of assessee's taxable income. for more details u can visit tax-planning.in.

RSG

CA J.Alamelu lakshmi (Chartered Accountant) (852 Points)
Replied 11 August 2010

Thanx frenz

Sirisha (Nil) (24 Points)
Replied 11 August 2010

Yes Friends ,

I accept Your Views With regard to Clubbing provisions. However, The Individual Can Claim deduction In his IT Returns , though the payment has been made from the sons bank account.

A defence with this regard is the individual can book a cash payment ( to his son for the purpose of Payment of LIC.), thereby resulting in a contra entry in the sons books.