Karnataka State Employee's Group Insurance Scheme, 1981-Relief under section 80C of the Income-tax Act, 1961, to contribution made under this scheme - Income Tax - 518/1988

Karnataka State Employee's Group Insurance Scheme, 1981-Relief under section 80C of the Income-tax Act, 1961, to contribution made under this scheme Circular No. 518 Dated 9/8/1988 To All Chief Commissioners of Income-tax and All Directors-General of Income-tax. Sir, Subject: Karnataka State Employee's Group Insurance Scheme, 1981-Relief under section 80C of the Income-tax Act, 1961, to contribution made under this scheme. The Government of Karnataka has introduced the Karnataka State Employees' Group Insurance Scheme at a low cost and on a wholly contributory and self-financing basis for giving the twin benefits of an insurance cover to help their nominees in the event of death in service and a lump sum payment to augment their resources on retirement. A question has been raised whether the Karnataka Government servants' monthly contributions under the scheme would be eligible for deduction under section 80C(2)(a)(i) of the Income-tax Act, 1961. It is clarified that the contributions to the Karnataka State Government Employees' Group Insurance Scheme 1981, will be eligible for relief under section 80C of the Income-tax Act, 1961, subject to the limit as prescribed in section 80C(4) of the Income-tax Act, 1961. Yours faithfully, (Sd.) Anand Kishore, Under Secretary, Central Board of Direct Taxes.