NSC savings paid by employee on the parents name is eligible for tax savings in the hands of employee?
Chaitanya ABK (Assistant Manager F & A) (28 Points)
15 February 2012NSC savings paid by employee on the parents name is eligible for tax savings in the hands of employee?
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 08 March 2012
Mr.Chaitanya ABK
The investment/deposit in National Savings Certificates in the name/s of parrent/s of the assessee is not eligible for deduction u/s 80C.
The investment in Natinal Savings Certificates in Section 80C(2) finds it place in clause (ix) of that sub-section. [Section 80C(2)(ix)].
In sub-section (4) of Section 80C is not considered for investment in the name/s of parent/s.
Hence the investment/deposit in National Savings Certificate in the name/s of parent/s of the assessee is not eligible for deduction u/s 80C.
Best Wishes
Sathikonda
CA SACHIN VIJ
(Chartered Accountant)
(112 Points)
Replied 14 March 2012
NSC should be in the name of assessee itself.
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