Deduction u/s 80C - Hindu undivided family is entitled to deductions only in respect of any sums paid in the previous year by the assessee out of its income chargeable to tax, to effect or to keep in force an assurance on the life of any member of the family. - Income Tax - 553/CBDT

INSTRUCTION NO. 553/CBDT Dated : June 7, 1973 Section(s) Referred: 80C Statute: Income - Tax Act, 1961 Instances have come to the notice of Board that deductions under section 80C (1) have been allowed in the assessments of Hindu undivided families also in respect of contributions to the Public Provident Fund set up by the Central Government and /or deposits in a 10-year or 15-year account under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959. This is not in accordance with the law. Provisions about a Hindu undivided family are contained in section 80C (2) (b) of the Income-tax Act, 1961 under which a Hindu undivided family is entitled to deductions only in respect of any sums paid in the previous year by the assessee out of its income chargeable to tax, to effect or to keep in force an assurance on the life of any member of the family. 2. Section 80C (2)(f) permits the deduction of sums deposited in 10-year or 15-year account only to an individual and not to a H.U.F. 3. Necessary clarifications may please be issued to the Income-tax Officers working in each charge. Past assessments may also be reviewed to the extent feasible to withdraw the excess relief, if any, allowed in such cases.