Deduction u-s 80-C

in your given case its indeed Mr. X who can claim deduction and not Mrs.X....
as is provided by the text of d law...

" In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees.

(2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee—

(i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);"

But i believe ur CA is also correct to some extent..but not wholly.....
Suppose if payment in LIP or PPF is done by parent of X...den deduction shall be available...no doubt... but to the parent of X...I guess u r either misinterprating d stance of ur CA or there is some serious misunderstanding

 

Thus...following cases are made....

1-- payment by mr.X....deduction to Mr.X
2-- payment by spouse of x....deduction to mrs.X
3-- payment by any parent of mr/mrs X...deduction to parent of mr/mrs X... 

Kindly wait for others views also ...

I strongly agree with u parag.

sunil

Dear Parag,

        I agree with the view given by you,

Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC).

See the Point is if you have paid LIP for your wife and kids than either of you can claim the deduction, coz the section allow its. and is you have paid LIP for you Parent and In Law in that case since you are disallowed from claiming deduction, your parents and In law can claim the deduction.

Hope It help, Brother.

Well i agree to you all...

Nothing is specified.  Normally its allowed to the person who is paying it. If you read the section as mentioned by Hussain above.

Make tax planning for it. Claim deduction who is earning more and having tax liability more. But dont claim for both.

Thanks for all the view above! I feel the proper treatment should be that Mr.X should avail the deduction and not Mrs.X!

I need one more clarification in this regard! Is there any concept of DEEMED PAYMENT in the Income Tax Act? One of my fellow CA advised me that if we transfer the LIP paid by the husband into the books of Account of the wife by passing a Journal Entry & treating the same as Gift or Unsecured Loan then it can be treated as Deemed Payment of LIP by the wife! I doubt this perception!

Kindly comment on the same!

regards

Parag

Parag there is nothing like deemed payment... First tell me whats the amount.. I mean if its a smaller amount dont bother about it..,.

And even if u want to do than do it as a unsecured loan and not as a gift....

To Shivang.. the LIP paid by the husband is more than Rs.2 Lacs and from his Bank A/c through cheques... and the LIP paid by the wife is NIL...

Hi,

Me and my file IT return seperately.

Can my wife deposit amount in my PPF account and claim 80C benefit?

Regards,

AMit

U can shopw it as unsecured loan... if the wife is not earning than no use of it... claim deduction for husband.. and if wife is earning treat it as unsecured loan.....

@ Amit

Public Provident Fund (PPF)

An individual can open public provident fund account in his own name or in the name of minor of whom he is the guardian. One can get the deduction u/s 80c, deposit in his own account, or his/her spouse or in the account of his /her children.

• Important Note: Under Public Provident Fund (PPF) the maximum contribution is Rs. 70,000/-.

So your wife can do that...

According to me,

Payment made by Husband can be treated as unsecured loan given to Wife and paid in her behalf.

Here Payment is made by cheque. So no question arise about 'Cash Payment /Receipt exceeding Rs.20,000/-'.

So, Wife can claim deduction and show the amount as unsecured loan from her Husband.

Thanks.

Mr. Shivang,

Whether limit of Rs.70,000/- is as per PPF Act or as per I.T.Act.

I think Rs.70,000/- is the maximum amount that can be contributed to PPF during the year and there is no limit in I.T. Act as to limit of deduction.

RS. 70K is as per IT act....But overall limit is 100000 if deposited under VPF.... and i think this is the case of VPF.... so can claim 100000 u/s 80C