510. Date of application of annuity plan of LIC
1. Section 80CCA of the Income-tax Act, 1961, as substituted by the Finance Act, 1988, with effect from 1st April, 1988, provides for a deduction, inter alia, of amounts paid to effect or keep in force a contract for such annuity plan of the Life Insurance Corporation as the Central Government may, by notification in the Official Gazette, specify. For the assessment year 1988-89, the amount qualifying for deduction is Rs. 20,000 and the subsequent assessment years, the qualifying amount is Rs. 30,000.
2. The Central Government has, by Notification No. GSR 903(E), dated 6-9-1988 specified “Jeevan Dhara” and “Jeevan Akshay” plans of the Life Insurance Corporation as annuity plans of that Corporation for the purposes of section 80CCA.
3. The Board have decided that amounts paid under the two annuity plans during the previous year relevant to the assessment year 1988-89 would be eligible for deduction under section 8OCCA even though such payments may have been made before the date of the aforesaid notification.
Circular : No. 531, dated 17-3-1989
