Deduction under section 80c in respect of lip

This query is : Resolved

CA Sanjay Baheti (Querist)
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13 March 2012 One of my client being a Individual Lady.
Prior to her marriage the LIP paid in her name was claimed as deduction u/s 80C from income of her parents in earlier periods.Now She was married in F.Y.2010-11. So far LIP paid for the Year 2010-11 is concerned the same was paid by her parents. However the same was not claimed as deduction u/s 80C from parents Income. Now my assesse i.e. Lady wants to file her income tax return for F.Y.2010-11. query is whether the LIP paid by her parents though not claimed by them in their return can be claimed as deduction from her Income u/s 80C of I.T. Act or not.
Please reply.

swasti

swasti (Expert)
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13 March 2012 Deduction/Rebate for LIP would be available to the person making payment. Hence in my opinion, in this case the deduction u/s 80C can be claimed by the parents and not the daughter.

Guest

Guest (Expert)

13 March 2012 Since payment is made by parents, she can not claim deduction u.s 80C. Deduction is available to the one who is making payment.

In case LIc is paid in cash you can show that payment is made by daughter in her books.