• Jun
  • 02
  • 2012

Income Tax Deduction Under section 80CCC, 80CCD & 80CCF

Posted In Income Tax | | 22 Comments » Print Friendly and PDF

DEDUCTION UNDER SECTION 80CCC

As per section 80CCC, where an assessee being an individual has in the previous year paid or deposited any amount 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 clause (23AAB) of section 10, he shall, in accordance with, and subject to the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessee’s account, if any) as does not exceed the amount of one lakh rupees in the previous year.

Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section, a rebate/ deduction with reference to such amount shall not be allowed under section 88 up to assessment year 2005-06 and under section 80C from assessment year 2006-07 onwards.

DEDUCTION UNDER SECTION 80CCD

As per the provisions of section 80CCD, where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004, has in the previous year paid or deposited any amount in his account under a pension scheme as notified vide Notification No. F.N. 5/7/2003- ECB&PR dated 22.12.2003, he shall be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited as does not exceed ten per cent of his salary in the previous year.

The benefit of new pension scheme has been extended to any other employees (also self employed person) w.r.e.f 1/04/09 and deduction is allowed to employees upto 10% of salary in the previous year and in other cases upto 10% of his gross total income in the previous year. Further it has been specified that w.r.e.f 1/04/09 any amount received by the assessee from the new pension scheme shall be deemed not to have received in the previous year if such amount is used for purchasing an annuity plan in the previous year.

It may be noted that the contribution made by the Central Government or any other employer, towards a pension scheme notified for section 80 CCD, shall be allowed as deduction in the computation of total income of the employee to the extent that it does not exceed ten percent of employee’s salary. W.e.f. 01.04.2011 (FY 2011-12), the amount of deduction so allowed shall be outside the overall limit of Rs one lakh under section 80CCE of the Income Tax Act, 1961. It is therefore, clarified that contribution made by an employee alone will be eligible to deduction limit of upto Rs.one lakh. The contribution made by the Central Government or any other employee to a pension scheme u/s 80CCD(2) shall be excluded from the limit of one lakh rupees provided under Section 80CCE.

Where any amount standing to the credit of the assessee in his account under such pension scheme, in respect of which a deduction has been allowed as per the provisions discussed above, together with the amount accrued thereon, if any, is received by the assessee or his nominee, in whole or in part, in any financial year,—

(a) on account of closure or his opting out of such pension scheme; or

(b) as pension received from the annuity plan purchased or taken on such closure or opting out,

the whole of the amount referred to in clause (a) or clause (b) above shall be deemed to be the income of the assessee or his nominee, as the case may be, in the financial year in which such amount is received, and shall accordingly be charged to tax as income of that financial year.

For the purposes of deduction under section 80CCD, “salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.

The aggregate amount of deduction under sections 80C, 80CCC and sub section (1) of Section 80CCD shall not exceed Rs.1,00,000/- (Section 80CCE)

DEDUCTION UNDER SECTION 80CCF

A new section 80CCF has been inserted by the Finance Act, 2010, wef 01.04.2011. The section 80CCF provides for deduction available to an individual or a HUF, the whole of the amount, to the extent such amount does not exceed Rs 20,000, paid or deposited during financial year 2010-11, as subscription to long-term infrastructure bonds as notified by the Central Govt for the purpose of this section.(Board Notification no 48/2010 dated 09.09.2010)

Deduction under this section can not exceed Rs 20,000 and are available only for current financial year 2011-12. The deduction under this section will be in addition to overall limit of deduction of upto Rs one lakh under section 80C, 80CCC and sub section (1) of Section 80 CCD.


22 Responses to “Income Tax Deduction Under section 80CCC, 80CCD & 80CCF”

  1. hari says:

    Hi,
    I have claiming 80 ccc pension fund under HDFC pension plan but company not allowing the claim since the policy is in the name of wife’s name.

    If the Policy is in the wife’s name it is not allowable what?

    can u please clarify.

    Regards,
    Hari

  2. Ajeet Tripathi says:

    Sir,
    I am an central gorvenment employee.
    Please guide me about 80ccd
    I am confused about ONGC prbc scheme. Please guide me

  3. M J Prajapati says:

    Sir,
    I am central govt. PSU employee. Can I get benefit of Section 80CCD(Employer paid PRBS Amount on behalf of employee)employer contribution of amount Rs483712 for the earlier year but pad in this AY year(2014-15).
    Pl. guide me.
    M J Prajapati
    09427019827

  4. patel jay says:

    Respected sir, please guide me about 80ccd I am
    Confused about ongc prbc scheme and how to treat tax to this please contact me 9537705864

  5. patel jay says:

    Respected sir, please guide me about 80ccd I am
    Confused about ongc prbc scheme and how to treat tax please contact me 9537705864

  6. O P ARYA says:

    Dear Sir,
    My employer has contributed lumpsump amount into pension scheme, notified since 2007, for previous years. The employer has deducted the tax on arears conting all contribution in one financial year. If I can claim a reabate under section 80CCD(2) and bifuricate the pension contribution in previous years.
    Regards.

  7. p. a. master says:

    i am a government servant.my income for financial year 2013-14 is 444330 after deduction under 80(c).can i take deduction of 10000 under 80(ccc){jivan surksha- l.i.c.}from 444330.may i have to submit my annual return for financial year 2013-14 online?

  8. p. a. master says:

    please guide me about 80ccc. i am government servant. my taxable income is 444330.i have invested 10000 in jivan surksha(l.i.c.).can i take 10000 deduction from 444330 for financial year 2013-14.

  9. vinod lohani says:

    hello guru if my gross income is 525500 and my contribution in NPS IS 43000 and gov is 43000 and from LIC i can save rs 100000 then how much i paid in income tex plz reply

  10. PARSHURAM says:

    I am a govt employee. If my total salary is 526000 annually and my contribution towards NPS is 32000 and so that is of govt is 32000. If my total saving u/s 80c is 90000.Then please calculate my tax.

  11. sarda says:

    if i paid lic premium of my son aged 20 year old, can i get income tax deduction u/s 80c

  12. K.Prabhakar says:

    Iam am central govt employee and y gross salary is 35000/- deduction through 80c is 170000/-aggregate deductable amount is 10000/-beside this any more concessions are there if it is there pl inform me otherwise pl tell me what is the amount of income tax to be deducted from my salary

  13. mukesh says:

    As individual if my contribution towards NPS is Rs 1 lakh then how much rebate I will get fron income tax

  14. Neeraj says:

    I am a govt employee. If my total salary is 360000 annually and my contribution towards NPS is 32000 and so that is of govt is 32000. If my total saving u/s 80c is 90000.Then please calculate my tax.

  15. jagjeet says:

    hi…i want to know that the contribution of govt.made in my pran act…is also included in my total income…i mean is govt contribution also a taxable amount.

  16. Krishna Kumar says:

    Please tell me U/s 80ccd(1) & 80ccd(2)Rebate Rs. 1.0 Lac Plus Contribution By Employee & Employer’S For the Financial Year (2012-2013) AY (2013-2014) .

  17. K David Johnson says:

    I am a Tamil Nadu govt employee. My contribution towards CPS is Rs 30000/-and +Rs 30000/- by employer (Govt) . Its both total becomes Rs 60000/-. May I take income tax rebate for Rs 60000/-in yr 2012-13 income tax return. Please give the reply in my mail id kdavidjohnson@gmail.com

  18. Kunal Ray says:

    Hi,
    The question is where to put the govt contribution in SAHAJ form (ITR 1). The said form has only one field for section 80 CCD.

  19. chaudhari parshant says:

    Iam uttarkhand govt.empliyee.my contribution towards nps is rs.31140.00 and rs.31140.00 by employer.Its both total becomes rs.62280.00 may I take income tax rebate for rs. 62280.00 in yr 2011-2012 assesment year 2012-13 under section 80ccd
    pl give information on my email id.

  20. amit says:

    Hi! Only the employer’s contribution is eliglbe for tax rebate under section 80CCD(2)

  21. Sudarsan says:

    Kindly clarify about eligibility of under sec 80CCF  (Investing in Long Term Infra Structure Bond) and investing in Rajiv Gandhi Equity Saving Scheme for the Fin. Year : 2012-13.

    Sudarsan

  22. Avtar Singh says:

    I am a hp govt employee. My contribution towards nps is Rs 25000/-and +Rs 25000/- by employer . Its both total becomes Rs 50000/-. May I take income tax rebate for Rs 50000/-in yr 2011-12 income tax return.

Leave a Reply