Special Frontier Force Group Insurance Scheme-Allowability of relief under section 80C(2)(a)(i) of the Income-tax Act, 1961 - Income Tax - 404/1985

Special Frontier Force Group Insurance Scheme-Allowability of relief under section 80C(2)(a)(i) of the Income-tax Act, 1961 Circular No. 404 Dated 15/1/1985 The Cabinet Secretariat have introduced with effect from January 1, 1980, an insurance scheme called the "Special Frontier Force Group Insurance Scheme" for the welfare of employees. The objective of the scheme is to provide, at a low cost and on a wholly contributory and self-financing basis, the benefits of an insurance cover for the families of the employees in the event of their death while in service and a lump sum payment to the employees on their retirement/discharge, etc., from service. 2. A question has been raised whether the contributions made by the officers and staff towards the Special Frontier Force Group Insurance Scheme would entitle the contributors to relief under section 80C(2)(a)(i) of the Income-tax Act, 1961. It has been decided that the amount contributed by the employees of this organisation to the Special Frontier Force Group Insurance Scheme will be treated as an insurance premium and will qualify for relief subject to the condition imposed in section 80C(4) of the Income-tax Act. The above position may be brought to the notice of all the officers working in your charge. (Sd.) R.K. Tewari Under Secretary Central Board of Direct Taxes.