Deductions under Section 80CCC - Premiums paid for Pension Plans
- Permitted Deduction: Section 80CCC allows to an individual, tax deduction for amount paid during the financial year out of income chargeable to tax, towards specified Pension Plan. Maximum deduction allowed is Rs.100,000, the overall limit provided under the Income-tax Act for payments/deposits specified under Section 80C, 80CCC and 80CCD (contribution to pension scheme of Central Government) in aggregate.
- Receipt under Policy: Amounts received on surrender (whole/part) of annuity plan, (including accrued interest / bonus) and amounts received as Pension are taxable as income in the year of receipt if deduction has been allowed earlier for the contribution (premiums) made to the said Pension plans.
"Please note that tax laws and benefits under the said laws are subject to change. Please consult your tax advisor for the latest tax benefits on Life Insurance plans."