Section 80CCC Deduction

Section 80CCC deduction of the Income-tax Act, 1961 is available for amount paid or deposited for any annuity plan of Life Insurance Corporation of India or any other insurer for the purpose of receiving pension. The aggregate deduction under Section 80CCC, Section 80C and Section 80CCD should not exceed one lakh fifty thousand rupees.

Section 80CCC Deduction - Eligibility Criteria

Any individual can claim Section 80CCC deduction of the Income Tax Act. The individual can be a resident of India, NRI, Indian National or Foreign National. HUFs cannot claim deduction under Section 80CCC. In case any amount along with bonus is received on surrender of policy and pension received will be treated as income of the assessee in the previous year to which the amount was received.

Section 80CCC Deduction

Section 80CCC - Income Tax Act - Bare Act

Deduction in respect of contribution to certain pension funds -

  1. Where an assessee being an individual has in the previous year paid or deposited any amount out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the fund referred to in clause (23AAB) of section 10, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessee's account, if any) as does not exceed the amount of one hundred and fifty thousand rupees (Rs.1.5 lakhs) in the previous year.
  2. Where any amount standing to the credit of the assessee in a fund, referred to in sub-section (1) in respect of which a deduction has, been allowed under subsection (1), together with the interest or bonus accrued or credited to the assessee's account, if any, is received by the assessee or his nominee:
    • on account of the surrender of the annuity plan whether in whole or in part, in any previous year, or
    • as pension received from the annuity plan
  3. Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section, a rebate with reference to such amount shall not be allowed under section 88.

Clause 23AAB of Section 10

Any income of a fund, by whatever name called, set up by the Life Insurance Corporation of India on or after the 1st day of August, 1996 [or any other insurer] under a pension scheme:

(i) to which contribution is made by any person for the purpose of receiving pension from such fund

(ii) which is approved by the Controller of Insurance 89-90[or the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), as the case may be].

INDIAFILINGS

India's Largest Business Services Platform
Welcome IndiaFilings

OUR MISSION

We help Entrepreneurs start and operate successful businesses

IndiaFilings.com is India's largest online business services platform dedicated to helping people easily start and manage their business, at an affordable cost. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.

IndiaFilings.com partners with a network of experienced Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Ex-Bankers and Financial Experts across India to provide a comprehensive range of services for small and medium sized enterprises.

IndiaFilings Map Data

Reasons to choose IndiaFilings
google-partner

IndiaFilings is a Google Partner. Google Partners are tasked with helping businesses market their service or products online.

Google Partner
tuv-sud

IndiaFilings is ISO 9001:2008 Certified by TUV SUD, a leading Certification Body recognized worldwide.

TUV ISO Certified
red-herring-winner

IndiaFilings.com is a winner of Red Herring Top 100 Asia Award. Red Herring recognizes promising companies from across the world.

Red Herring Award
crisil-verified

IndiaFilings is a CRISIL Verified Business. CRISIL is a subsidiary of Standards & Poor, a leading International Rating Agency.

CRISIL Verified

In The Media

LEARNING CENTER

We have put together an amazing collection of article, guides, videos and business tips in our Learning Center. Planning to start a business or need legal help? Visit the IndiaFilings Learning Center and you will find articles and guides on a wide range of topics. Feel free to share our articles and bookmark the IndiaFilings Learning Center.

450+ Strong Team

450+ in-house team members with a network of over 6000+ Professionals.

24/7 Support

Get support through phone, email, mobile app or live chat - 24/7, 365 days.

EMI Payment

Easily pay online with EMI payments, credit or debit card, net banking, PayPal and more.

X Need help with something?

Need help with something?

loading...