490. Contributions made under the Central Government Employees’ Insurance Scheme – Whether eligible for relief under clause (a)(i) of sub-section (2)
1. Ministry of Finance vide its Office Memorandum No. F. 60/14/77-IC, dated 23-6-1977 has formulated a scheme known as the Central Government Insurance Scheme under which all Central Government servants on regular establishments (including work-charged staff) other than railway servants and persons paid from Defence Services Estimates have been provided with an insurance cover of Rs. 5,000.
2. A question has been raised whether the Government servant’s monthly contributions under the scheme would be eligible for relief under section 80C(2)(a)( i). This question has been considered and it is clarified that the contributions to the Central Government Employees’ Insurance Scheme will be eligible for relief under section 80C, subject to the qualifying amounts prescribed in section 80C(4).
Circular : No. 233 [F. No. 178/33/77-IT (A-I)], dated 5-12-1977
