Deduction u/s 80CCA - Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan - Income Tax - Ready Reckoner - Income Tax

Section 80CCA Provision related to deposits under National Savings Scheme or Payment to a deferred annuity plan is under Section 80CCA. This section is also under Chapter VIA and the assessee can claim deductions from Gross Total in respect of payments. Eligible Assessee : Individual and HUF Maximum deduction : Total amount of deduction can be claimed under section 80CCA is restricted to the limit prescribed under section 80C. Eligible Deductions : These are as follows:- Any amount in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf; Any amount to effect or to 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. However, no deduction under this sub-section shall be allowed in relation to any amount deposited or paid under clauses ( i ) and ( ii ) on or after the 1st day of April, 1992. Taxability : Where any amount standing to the credit of the assessee as aforesaid in respect of which a deduction has been allowed together with the interest accrued on such amount is withdrawn in whole or in part in any previous year; Any amount is received on account of the surrender of the policy or as annuity or bonus in accordance with the annuity plan of the Life Insurance Corporation in any previous year The amount equal to the whole of the amount shall be deemed to be the income of the assessee of that previous year in which such withdrawal is made or, as the case may be, amount is received, and shall, accordingly, be chargeable to tax as the income of that previous year. However, no taxability apply to any amount received by the assessee on account of the surrender of the policy in accordance with the terms of the annuity plan of the Life Insurance Corporation where the assessee elects to surrender before the 1st day of October, 1992, the said annuity plan in respect of which he had paid any amount before the 1st day of April, 1992. Where a partition has taken place among the members of a Hindu undivided family or where an association of persons has been dissolved after a deduction has been allowed, the amount shall be taxable as if the person in receipt of income referred to therein is the assessee.