Say, an assessee pays Rs.150000/- towards LIC premium and other investment avenues available under Sec 80C.
Until A.Y.2005-06 there was a clause that the payment has to be made out of income chargeable to tax. However, this is not the case from A.Y.2006-07.
So my query is, whether the excess Rs.50000/- can be availed by assessee’s wife in her income tax return as deduction under Sec 80C. The assessee would debit the excess Rs.50000/- to his wife’s account in his books and would show that as amount receivable from her. Is it valid in the current scenario when there is no restriction on payment out of income chargeable to tax?
Menu
Section 80C
Replies (2)
Yep, the same can be done. Just dont forget to pass the necessary entries in the books of both people.
Ashu
Please sec80C(2). It reads the amount 'paid or deposited by the assessee'. Accordingly the assessee who actually paid or deposited can only claim the benefit. The amendment is not relevant as one hast to first see the payment. Once the payment is made by the assessee, the the source is immaterial. Hence your idea is not tenable.
Recent Threads
- Exports against INR PO payable by Domestic Company
- Which websites are best for government exam prepar
- TDS on maturity payment of LIC of india
- ITR2 Gold ETF short and long term
- Query under faceless assessment
- Purchase of business
- Refund of ITC for advance paid to overseas supplie
- Clubbing query (when gifts given to multiple fami
- Transfer Pricing Audit Upload Form 3CEB - Income T
- Only a Few Pages Indexed by Google Despite Sitemap
Related Threads
CAclubindia
