Section 80CCC of the Income Tax Act 1961 provides tax deductions for contribution to certain pension funds. Section 80CCC provides for Income Tax Deduction for contribution to Pension Funds under Chapter VI-A from the Gross Total Income of a taxpayer for the financial year in which the contribution is being made.
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.
Deduction under section 80CCC is not available to a Hindu Undivided Family (HUF).
Eligible amount of deduction:
The maximum available deduction under this Section is Rs. 1,50,000/- per annum.
Section 80CCC of the Income Tax Act allows income tax deduction to be claimed by taxpayers who make payments or deposits towards purchase of any annuity plan of public insurance company such as LIC or other insurance companies.
The policy towards which payments are made has to pay out pension from the accumulated funds, as per the terms laid out in Section 10 (23AAB). The tax deduction can only be claimed for the year in which the individual has paid the amount.
The taxpayer cannot claim deduction on the interests or bonuses accrued from the policy.
Total deduction under section 80C, section 80CCC and section 80CCD cannot be more than INR 1.50 Lakhs.
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Note: This Post was last updated on January 23, 2023
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