80c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2012 Dear Expert,
I am an individual proprietor, and want ot invest in NSC u/s 80C. For this purpose it is better to issue cheque from my current a/c open in my firm name or from my saving a/c.
Please advise me.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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18 August 2012 Dear Sir,If your firm is a proprietor ship firm then it is right to give check from the current account and this will be treated as your drawings otherwise it is advisable to give check from your saving bank account. Thanks

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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18 August 2012 There is no distinction between individual and its proprietorship firm.
Even if you invest amount by issuing cheque from your firm, the deduction will be available.

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2012 Dear Sir, one more thing to ask, If LIC premium Rs. 30000/- paid in cash, whether the department will allow it as deduction u/s 80C or they can reject it as it is more then 20000/-.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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18 August 2012 it will be allowed since Rs. 20000 limit is for deduction of expenditure and not for deduction under section 80C

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