Army Group Insurance Scheme. - Income Tax - 1125/CBDT

INSTRUCTION NO. 1125/CBDT Dated : November 13, 1977 Section(s) Referred: 80C Statute: Income - Tax Act, 1961 Under the Army Group Insurance Scheme, which has been introduced w.e.f. 1st January, 1976 under the authority of the Government of India, Ministry of Defence letter No.PC.No.A/37586/AG/PG JAC/9302/D(Pay/Services), dated the 15th December, 1975 an insurance scheme has been started by which all existing and future officers/jawans of the Army are required to contribute a certain amount monthly for a life cover. 2. A question has been raised whether the contributions made by the officers and jawans of the Army towards the Army Group Insurance Scheme Fund would be entitled to relief under section 80C(2)(a)(i) of the I.T. Act, 1961. It has been decided that the amount contributed by Army personnel to the Army Group Insurance Fund will be treated as an insurance premium and will qualify for relief subject to the restrictions imposed by section 80C(4) of the I.T.Act, 1961.