Deduction Under section 80C for HUF - Professionals - Taxation - TIK Share
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Deduction Under section 80C for HUF


CA Rohan Jain

2016-03-15

Huf cannot invest in NSC.

But can huf claim deduction for investment in NSC in Karta's name and also in members name?

In that case Interest on NSc  also will be shown for huf only.?

Investment is done from huf funds.

Rahul Rai

2016-03-16

HUF cannot invest in NSC, that implies deduction cannot be availed by HUF. HUF has seperate PAN, claiming exemption will be against intention of law.

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CA Rohan Jain

2016-03-16

Huf cannot invest doesn't imply that it cannot claim deduction, because karta and other members can invest from huf funds and deduction can be claimed.

This is common practice going on, and huf is claiming deduction for NSC.

Intention of law is to incentivise such investments.

Same is even been done in case of LIC, where huf claims deductions for lic of members.

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Rahul Rai

2016-03-16

In case of insurance, it is specified that HUF can insure its members. But in case of NSC, option for HUF is not given.

I think we should look for any case law to settle the matter. You got any idea on any case law?

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CA Rohan Jain

2016-03-16

@ Rahul Rai

Yes you are right.

Huf cannot claim that deduction.

Only LIC is permissible because it is specifically given in law,  that is not in case of nsc.

However, I was confused because very HUF are claiming deduction for nsc's.its incorrect however.

No, I did not get any case laws for this issue.

 

 

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