Section 80CCC: Income Tax Deduction for Contributions to Pension Funds
As per section 80CCC, an individual both resident and non-resident can claim a deduction for contributions to annuity plans. The deduction is also available for contributions made for keeping in effect the existing annuity plans. These pension plans can refer to either those distributed by LIC of India or those notified under section 10 (23AB) of the income tax act.
The benefit under this section is within the overall limit of section 80C. Also, only the contributions made in a particular financial year can be claimed as a deduction but the returns and withdrawals are taxable in all scenarios.
Who can claim deduction under section 80CCC?
Only Individual Assessee whether resident or non-resident can claim deduction under section 80CCC for the contributions made to the specified pension plans.
What are the eligible pension plans u/s 80CCC?
Investment in the following plans can entitle you to income tax benefits u/s 80CCC
Annuity Plans of Life Insurance Corporation of India (LIC) or
Insurers notified under section 10(23AB) of the income tax act 1961.
What is the tax benefit allowed u/s 80CCC?
Under section 80CCC you can claim an income tax deduction for the contributions made during the year in specified pension plans. The tax deduction can be claimed upto a maximum of Rs 1.5 lakhs.
The surrender value of the annuity policy is taxable in all scenarios.