Read the below mentioned pointers to know more about Section 80CCC, Income Tax Act 1961 -
Here are some of the terms and conditions associated with Section 80CCC. Let’s have a quick look at the pointers given below –
You are eligible for the deduction under Section 80CCC if you qualify the following criteria. Please have a look –
The provisions mentioned under Section 10 (23AAB) are integral to Section 80CCC of Income Tax Act, 1961. It is associated with the money earned from an account or fund by an approved insurance service provider like LIC. It is mandatory for the fund or policy to be started before August 1996 under the name of a pension scheme. The contributions made towards the policy must have been paid out with the sole intention of getting pension income in the years to come.
These are some of the important pointers about Section 80CCC that you should know as a taxpayer. Have a look –
With Section 80CCC, a taxpayer can save a considerable amount of money in regard to his or her taxation liability. In order to get this exemption of tax, a taxpayer is required to keep a record of whatever transaction he or she is making towards the annuity plan.
Questions related to Section 80CCC of the Income Tax Act, 1961 are endless. Here we have curated a list of some of the most frequently asked questions about the same. Hopefully, these will help you curtail confusions to a great extent. Let’s have a quick look –
According to Section 80CCC of the Income Tax Act, 1961, a taxpayer is entitled to claim tax exemptions for monetary contributions made towards certain insurance policies or pension funds.
Exemptions on tax are only applicable to payments that are made in the form of policy premiums for an annuity policy purchased from an approved insurance provider like LIC and others.
The maximum amount of tax deductions that can be availed under Section 80CCC of the Income Tax Act, 1961 is Rs. 1.5 Lakhs.
The proceeds or money gained from any insurance or annuity plan are not tax-free. The amount of money received from the policy, in the form of bonus or interest, both are taxable. Moreover, a taxpayer can claim tax exemptions under Section 80CCC of the Income Tax Act, 1961 only for the payments made for any annuity plan.
It can be defined as an investment product that provides income after retirement. Under Section 80CCC of the Income Tax Act, 1961, a taxpayer is allowed to claim deductions in tax against the monetary contributions made towards any pension fund. For claiming this tax benefit, a taxpayer has to make monetary transactions for getting an annuity from a fund, as mentioned Under Section 10 (23AAB). The maximum amount of deductions that can be claimed by a taxpayer under Section 80CCC of the Income Tax Act, 1961, is Rs. 1.5 Lakhs.
Yes, even if you are an NRI you are entitled to claim a tax deduction under Section 80CCC of the Income Tax Act, 1961 for making contributions towards an annuity plan or pension fund mentioned under the Section 10 (23AAB). However, if you belong to HUF (Hindu Undivided Family) category, you are not allowed to ask for tax deductions under Section 80CCC of the Income Tax Act, 1961.
The tax deducted under Section 80CCC of the Income Tax Act, 1961 is a part of the total tax deduction under Section 80C of the Income Tax Act, 1961. The limit of tax deduction under Section 80CCC of the Income Tax Act, 1961 is combined with the limit of tax deduction under Section 80C and Section 80CCD of the Income Tax Act, 1961. So, 80CCC, 80C, and 80CCD combinedly make the amount Rs. 1.5 Lakhs.
As per the Income Tax Department of India, an individual taxpayer is entitled to claim a deduction in taxes for monetary contributions towards annuity plans or pension funds purchased from any approved insurance service provided such as LIC and others. Also, the total amount of tax deduction under Section 80C, 80CCC, and 80CCD should not exceed the amount of Rs. 1.5 Lakhs.
Well, the answer is no. You are not allowed to make any tax deduction claim if you have pay towards an insurance plan that’s nowhere related to any pension scheme under section 80CCC. Contributions in the form of premiums towards life insurance plans (term insurance plans, endowment plans, ULIPs, etc) are eligible for tax exemptions under ITA, Section 80C. This deduction of taxes can be claimed for making a payment towards self-insurance, insuring dependent children and spouse and any other family member of HUF (Hindu Undivided Family).
According to Section 80CCC of the Income Tax Act, 1961, an individual taxpayer is eligible for claiming a tax deduction if he or she makes a payment towards any pension fund or annuity plan. Also, whether you are a resident or an NRI, you are eligible to make a claim under Section 80CCC of the Income Tax Act, 1961. However, if you are a member of a HUF, you are not allowed to ask for any tax benefit under the same.
So, these are some of the most frequently asked questions in regard to Section 80CCC of the Income Tax Act, 1961. Hopefully, these will help you with your tax-related queries.
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