December 14, 2018

Deduction under section 80C, 80CCC of Income Tax Act,1961

  • Life insurance premium for policy by an Individual or HUF :
    • In case of individual:  life of assessee, assessee’s spouse and any child of assessee,
    • In case of HUF :  life of any member of the HUF
  • Sum paid under a contract for a deferred annuity by an Individual or HUF:
    • In case of individual : life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)
    • In case of HUF : on life of any member of the HUF
  • Any Sum deducted from salary payable to Government employee for securing deferred annuity, then the benefit of which is available to assessee, wife/children [qualifying amount limited to 20% of salary]
  • Contribution by an employee to Statutory Provident Fund or Recognised Provident Fund
  • Contributions by an individual made under Employees’ Provident Fund Scheme.
  • Contribution to Public Provident Fund Account in the name of:
    • In case of individual : individual or his spouse or any child of such individual
    • In case of HUF : any member of HUF
  • Contribution by an employee to an Approved Superannuation Fund
  • Subscription to notified savings certificates [National Savings Certificates (VIII Issue)]
  • Sum deposited in Sukanya Samriddhi Account by an individual
  • Contribution for participation in unit-linked Insurance Plan(ULIP) of UTI
    • In case of an individual:  individual, his spouse or any child of such individual, or
    • In case of HUF : name of any member thereof
  • Contribution to notified unit-linked insurance plan of LIC Mutual Fund [Dhanaraksha 1989] by an Individual or HUF
    • In the case of an individual : individual, his spouse or any child of such individual
    • In the case of a HUF:  any member thereof
  • Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]
  • Any sum paid by an individual  to any university, college, school or other educational institution situated in India for the purpose of Tuition fees (excluding development fees, donations, etc.) , for full time education of any 2 of his/her children
  • Certain payments for purchase/construction of residential house property
  • Subscription to notified schemes of (a) public sector companies engaged in providing long term finance for purchase/construction of houses in India for residential purposes, (b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both
  • Sum paid towards notified annuity plan of LIC (New Jeevan Dhara/New Jeevan DharaI/ New Jeevan Akshay/New Jeevan AkshayI/ New Jeevan AkshayII/ Jeewan AkshayIII plan of LIC) or other insurer.
  • Subscription to any units of any notified Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)
  • Contribution by an individual to any Pension fund set up by any mutual fund or by the UTI (UTI Retirement Benefit Pension Fund)
  • Subscription to equity shares or debentures in a public company engaged in infrastructure including power sector or units of mutual fund proceeds which are utilized for developing, maintaining etc of a new infrastructure facility.
  • Term deposits for a fixed period of not less than 5 years with a scheduled bank, in accordance with a scheme framed and notified by Central Government
  • Subscription to notified bonds issued by the NABARD i.e.National Bank for Agriculture and Rural Development
  • Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
  • 5years term deposit in an account under the Post Office Time Deposit Rules, 1981

 

Amount of Deduction

Maximum limit of Rs. 1,50,000 i.e. aggregate of the deduction that may be claimed under sections 80C, 80CCC and 80CCD.

Maximum amount= 80C + 80CCC+ 80CCD= 1,50,000

Sum assured means minimum amount assured under the policy without including any premium agreed to be returned and/or any benefit by way of bonus i.e. it is guaranteed amount that the policyholder will receive.

80CCC: Deduction in respect of contribution to pension fund 

Conditions for claiming Deduction

Individual who has paid or deposited, any amount under a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the fund, then he is eligible for deduction

If amount received by the assessee or his nominee

  • on surrender of the annuity plan whether in whole or in part, in any previous year,then the amount shall be deemed to be the income of the assessee in the previous year in which such annuity or plan surrender,
  • as pension received from the annuity plan, then the amount shall be deemed to be the income of the assessee in the previous year in which such pension is received

 

Amount of Deduction

Amount paid or deposited

or

Maximum deduction of Rs.1,50,000 (aggregate of 80C, 80CCC,80CCD)

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