Deduction in respect of contribution to certain pension funds.
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)
- 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.