Deduction u/s 80E - deduction in respect of payment for securing retirement annuities and refund of annuity deposit - Income Tax - 525/CBDT

INSTRUCTION NO. 525/CBDT Dated : March 16, 1973 Section(s) Referred: 80E(6)(i) Statute: Income - Tax Act, 1961 Under the provisions of clause (i) of sub-section (6) of Section 80E of Income-tax Act, 1961, the deduction in respect of payment for securing retirement annuities shall not be allowed in the case of any individual whose gross total income includes income which is chargeable under the head "interest on securities" or "income from house property" or " Capital Gains" or any income chargeable under the head "income from other sources" in so far as it is not immediately derived from personal exertion of the individual and the aggregate amount of all such income is more than ten thousand rupees. 2. A question has arisen as to whether refund of annuity deposit can be treated to be income immediately derived from personal exertion for the purposes of section 80E of the Act. In this connection, the Board are advised that the refund of annuity deposit cannot be treated as income derived immediately from personal exertion of the individual for the said purpose. 3. The above decision of the Board may please be brought to the notice of all the assessing officers under your charge.