Deduction u/s 80c in respect of lip

Tax queries 903 views 3 replies

CA Sanjay Baheti

PROPRIETOR

1160 Points Joined January 2010

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.

Replies (3)

Akhilesh Kapadia

Employee

106 Points Joined March 2012

Not possiblle. LIP paid for individual spouse and children only available.

Jaimin Deliwala C.A.

C.A.

44 Points Joined January 2008

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.

Sarvesh Kumar Singh

Student CA Final (Articled Asst.)

170 Points Joined August 2009

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.