DEDUCTION AVBL OF LIC PREMIUM OR NOT TO SON?

This query is : Resolved

CA Lokesh Pokharna (Querist)
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02 November 2010 A MOTHER(TEACHER) MADE A LIC POLICY IN THE NAME OF HER SON , ANUUAL PREMIUM FOR THAT RS. 10000 WHICH SHE IS TAKING DEDUCTION U/S 80..
NOW MOTHER HAS BEEN RETIRED AND SHE IS NOT HAVE ANY INCOME.
TELL ME CAN HER SON NOW CLAIM DEDUCTION U/S 80 C FOR RS. 10000 FROM HIS INCOME, BECOZ RECIEPT IN HIS NAME
NOTE: BUT STILL PAYMENT MADE BY MOTHER

DOES IT MAKE ANY DIFFERENCE IF NOW PAYMENT MADE BY HER SON?????

GSTP Hari Dhayalan Konar

GSTP Hari Dhayalan Konar (Expert)
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02 November 2010 yes he can claim.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 November 2010 No he can not claim. Deduction available only to payer.
So in this case deduction u/s80C can only be claimed by mother.
If payment made by son then son can claim deduction u/s 80C.

taxindiaconnect

taxindiaconnect (Expert)
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02 November 2010 Agree with sanjay

CA Lokesh Pokharna

CA Lokesh Pokharna (Querist)
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02 November 2010 but as we know that in reciept of lic premium only policy holder name mentioned by lic & name of payer not mentioned ,so who will get deduction a)mother, b) son c) both
in my opinion both can get becoz payer name not disclose by lic?????

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 November 2010 But you will have to show source of such payment. If paid by cheque then the source of payment can only be shown through bank statement of mother.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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02 November 2010 Only the payer can claim deduction of the payment made to LIC not both. If the same is accounted for in the books as paid on behalf of the son i. e. loan given to son, then only son can claim not otherwise.