Section 80CCC – Contribution Pension Funds: IT Circular 20/2015

Section 80CCC – Contribution Pension Funds: IT Circular 20/2015

Deduction in respect of contribution to certain pension funds (Section 80CCC)

This chapter is the part of 5.5 DEDUCTIONS UNDER CHAPTER VI-A OF THE ACT [Click to view] of IT Circular 20/2015

5.5.2 Deduction in respect of contribution to certain pension funds (Section 80CCC)

Section 80CCC allows an employee deduction of an amount paid or deposited 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 section 10(23AAB). However, the deduction shall exclude interest or bonus accrued or credited to the employee’s account, if any and shall not exceed Rs. 1,50,000.

However, if any amount is standing to the credit of the employee in the fund referred to above and deduction has been allowed as stated above and the employee or his nominee receives this amount together with the interest or bonus accrued or credited to this account due to the reason of

(i) Surrender of annuity plan whether in whole or part

(ii) Pension received from the annuity plan

then the amount so received during the Financial Year shall be the income of the employee or his nominee for that Financial Year and accordingly will be charged to tax.

Where any amount paid or deposited by the employee has been taken into account for the purposes of this section, a deduction with reference to such amount shall not be allowed under section 80C.

Chapter 5.5.1 Deduction in respect of Life insurance premia, deferred annuity, contributions toprovident fund, subscription to certain equity shares or debentures, etc. (section 80C)