Section 80CCC

Deduction in respect of contribution to certain pension funds.

Eligible Assessee:
Any individual taxpayer who contributes toward any annuity plan offered by an insurance company are permitted to claim the deductions under this section. The individual taxpayer can be a resident or non-resident Indian. 

Quantum of Deduction :
The Maximum permissible deduction is Rs 1,50,000 (Further, the overall limit of Rs 1,50,000 prescribed in section 80CCE will continue to applicable i.e., Maximum permissible deduction u/s 80C, 80CCC and 80CCD(1) put together is Rs 1,50,000)

Conditions :

  • Eligible Investment: Any amount paid or deposited in the annuity plan of LIC or any other insurer.
  • The plan must be for receiving a pension from a fund referred to in Section 10(23AAB).
  • If any bonuses are received or interest is accrued, it is not eligible for deduction under Section 80CCC.
  • Any amount received from the policy as a monthly pension is liable for taxation as per the prevailing rates. 
  • If the policy is surrendered, then the amount would also be subject to taxation.

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