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80cdeduction

27 July 2019

80cdeduction eligibility. Is it necessary that payment to be made by the assessee himself through his bank account to claim the same if the policy is in the name of any other members of family

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 27 July 2019

Is he proposer of the policy?

If yes, he can claim deduction.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 27 July 2019

1. As per sec 80C "the sum referred to in sec 80C(1) shall be any sums paid or deposited in the previous year by the assessee".
2. From the above reading, it is clear that such sum should have actually been paid by the assessee in order to claim deductions under this section and it can even be in the name of the family members.
3. In your case, it is necessary that such payment should be made by the assessee himself in the name of his bank account in order to have a clean deduction without any mishap.
Please correct me if the above interpretation has an alternative view.

Nisha Thampi (45 Points)
Replied 30 July 2019

Is there any problem if payment is made through the beneficiary's account and later it is reimbursed by the assessee through his bank account.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 30 July 2019

1. That can be done but how do you prove to the Income-tax authority that such payments are reimbursed. The better way is to make the payment on the person who is claiming the deductions to avoid any unnecessary question. Though reimbursement of such expense looks legitimate. But questions like is it done before the end of the FY and why such reimbursements ...? could arise.