Deduction in respect of contribution to pension fund - Section 80CCC - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of contribution to pension fund - Section 80CCC Persons Covered: Deduction is available to individual only. Individual may be resident or non-resident. Eligible Amount: Deposit or payment made to LIC or any other insurer in the approved annuity plan for receiving pension. Life Insurance Cover that are not related to pension schemes, are not eligible for deduction under this section. Relative Conditions: The amount should be deposited or paid out of taxable income. If the amount deposited in a pension fund has been claimed as deduction u/s 80CCC , then it should not be claimed as deduction under any other sections of the Act . Deduction u/s 80CCC can only be claimed in the year in which the amount has been paid. Taxability Any amount withdrawn or pension received from the plan is taxable in the hands of the assessee or nominee in the year of receipt as per the Income Tax Slabs of the taxpayer for the year in which the amount is received. Extent of deduction: The maximum amount deductible is 1,50,000 However, a per section 80CCE , the total deduction the assessee can claim under sections 80C , 80CCC and 80CCD(1) shall be restricted in aggregate to 1,50,000.