Lic premium

This query is : Open

Intermediate Student (Querist)
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09 April 2014 Dear expert,
I have paid lic premium of my FRIEND of Rs. 25221 through internet banking from my a/c.
Then my friend gave me cash.
Can my friend take deduction u/s 80C.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 April 2014 Yes, because premium payment need not be from the income of the insured.

Intermediate Student

Intermediate Student (Querist)
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09 April 2014 But in above case is there any contravention of section 269SS and 269T as i m receiving cash above Rs.20000

Sandeep Dharar

Sandeep Dharar (Expert)
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09 April 2014 Yes Vishal ur friend can claim deduction u/s 80C. But I suggest that ur friend must not shown cash payment to u of Rs. 25221/- in a single day. Ur friend can break up the amount and show it in 2 different days, otherwise the whole amount will b disallowed.

Intermediate Student

Intermediate Student (Querist)
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09 April 2014 I think it is not cash expense so it will be not disallowed.
But if we deem it loan then my friend can not pay me a cash above Rs. 20000 in one financial year.

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