Deduction under section 80CCA of the Income-tax Act, 1961-Notification of the Annuity Plans of the Life Insurance Corporation-Date of application-Regarding - Income Tax - 531/1989

Deduction under section 80CCA of the Income-tax Act, 1961-Notification of the Annuity Plans of the Life Insurance Corporation-Date of application-Regarding Circular No. 531 Dated 17/3/1989 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. G.S.R. 903(E), dated 6th September, 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 of the Act. 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 80CCA even though such payments may have been made before the date of the aforesaid notification. (Sd.) Anand Kishore, Under Secretary to the Government of India. * See [1988] 173 ITR 130.