Deduction u/s 80c in respect of lip

Dear

Kindly refer Circular No. 405 [F. No.178/1/84-IT(A-I)] dated 15-01-1985.

It is clearly mentioned there in that "The deduction U/s 80C can be claimed by the person who has contributed the monies out of his income chargeable to tax. It can be claimed by the first-named person in the joint holding if the first-named person has so contributed the amount."

The contribution by parent to the L.I.C. of major son/daughter is specifically mentioned there in for eligibility, but if parent does not opt to claim it, then the son/daughter can not claim it automatically.

Regards,

Jaimin.

If the LIP was paid in cash than you can claim it in the ITR of the assessee ir-respective of the fact that the money should be paid from income chargable to tax. If paid through bank account of parents than you can not claim it.