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TMI BlogRebate on life insurance premia, contribution to provident fund, etc. (Omitted)X X X X Extracts X X X X X X X X Extracts X X X X ..... er cent or more of his total income, the provisions of this sub-section shall have effect as if for the words twenty per cent , the words twenty-five per cent had been substituted : Provided further that an individual shall be entitled to a deduction of an amount equal to thirty per cent of the aggregate of the sums referred to in sub-section (2) if his income chargeable under the head Salaries - (a) does not exceed one lakh rupees during the previous year before allowing deduction under section 16; and (b) is not less than ninety per cent of his gross total income as defined in sub-section (5) of section 80B.' 2. Words out of his income chargeable to tax omitted by the Finance Act, 2002, w.e.f. 1-4-2003. 3. Substituted for not being an annuity plan referred to in clause (ii) of sub-section (1) of section 80CCA by the Finance Act, 1992, w.e.f. 1-4-1993. 4. Inserted by the Finance Act, 1992, w.e.f. 1-4-1993. 5. Substituted for by any person by the Finance Act, 1994, w.r.e.f. 1-4-1991. 6. Substituted for by any individual by any person by the Finance Act, 1994, w.r.e.f. 1-4-1991. 7. Inserted by the Finance Act, 1992, w.e.f. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and (viii) by the Finance Act, 1994, w.r.e.f. 1-4-1991. 25. Omitted by the Finance Act, 1994, w.r.e.f. 1-4-1991. 26. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. Earlier clause (d) was omitted by the Finance Act, 1994, w.r.e.f. 1-4-1991. 27. Substituted by the Finance Act, 2002, w.e.f. 1-4-2003. Prior to its substitution, sub-section (5), as amended by the Finance Act, 2000, w.e.f. 1-4-2001, read as under : (5) Where the aggregate of any sums specified in clause (xv) of sub-section (2) exceeds an amount of twenty thousand rupees, a deduction under sub-section (1) shall be allowed with reference to so much of the aggregate as does not exceed an amount of twenty thousand rupees. 28. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. 29. Prior to its omission, sub-section (5A), as inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997, read as under : '(5A) Where the aggregate of any sums specified in clause (i) to clause (xv) of sub-section (2) exceeds an amount of sixty thousand rupees, a deduction under sub-section (1) shall be allowed with reference to so much of the aggregate as does not exceed an amount of sixty thousand rupees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of an individual or a Hindu undivided family, whose gross total income before giving effect to deductions under Chapter VI-A, is more than one lakh fifty thousand rupees but does not exceed five lakh rupees, fifteen per cent of the aggregate of the sums referred to in sub-section (2); ( iii ) in the case of an individual or a Hindu undivided family, whose gross total income before giving effect to deductions under Chapter VI-A, exceeds five lakh rupees, nil .] (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee 2 [ *** ] - ( i ) to effect or to keep in force an insurance on the life of persons specified in sub-section (4); ( ii ) to effect or to keep in force a contract for a deferred annuity, 3 [ not being an annuity plan referred to in clause ( xiiia ) ] , on the life of persons specified in sub-section (4) : Provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; ( iii ) by way of deduction from the salary payable by or on behalf of the Government to any individual bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keep in force a contract for such annuity plan of the Life Insurance Corporation 8 [ or any other insurer ] as the Central Government may, by notification in the Official Gazette, specify; ( xiiib ) as subscription, not exceeding ten thousand rupees, to any units of any Mutual Fund notified under clause ( 23D ) of section 10 or the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), under any plan formulated in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf; ( xiiic ) as a contribution by an individual to any pension fund set up by any Mutual Fund notified under clause ( 23D ) of section 10 9 [ or by the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) ], as the Central Government may, by notification in the Official Gazette, specify in this behalf; ] ( xiv ) as subscription to any such deposit scheme of 10 [ ,or as a contribution to any such pension fund set up by ,] the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987) (hereafter in this section referred to as the N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of providing long-term finance for construction or purchase of houses in India for residential purposes 14 [ which is eligible for deduction under clause ( viii ) of sub-section (1) of section 36 ], or ( 6 ) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or 15 [ ( 6A ) the assessee's employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or] ( 7 ) the assessee's employer where such employer is a public company or a public sector company or a University established by law or a college affiliated to such University or a local authority 16 [ or a co-operative society ]; ( d ) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee, but shall not include any payment towards or by way of- ( A ) the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of capital means an issue referred to in clause ( i ) of the Explanation to clause ( xvi ) of sub-section (2) of section 88 .] 20 [ (2A) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an insurance policy other than a contract for a deferred annuity as is not in excess of twenty per cent of the actual capital sum assured. Explanation . -In calculating any such actual capital sum, no account shall be taken- ( i ) of the value of any premiums agreed to be returned, or ( ii ) of any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be, or, may be, received under the policy by any person. ] 21 [ (3) The sums referred to in sub-section (2) shall be paid or deposited at any time during the previous year, and the assessee, being an individual or a Hindu undivided family, shall be entitled to a deduction under sub-section (1) on so much of the aggregate of such sums paid or deposited as does not exceed the total income of the assessee, chargeable to tax during the relevant previous year. ] (4) The persons referred to in sub-section (2) shall be the following, name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] (7) Where, in any previous year, an assessee- ( i ) terminates his contract of insurance referred to in clause ( i ) of sub-section (2), by notice to that effect or where the contract ceases to be in force by reason of failure to pay any premium, by not reviving 31 [ contract of insurance,- ( a ) in case of any single premium policy, within two years after the date of commencement of insurance; or ( b ) in any other case, before premiums have been paid for two years; or ] ( ii ) terminates his participation in any unit-linked insurance plan referred to in clause ( xii ) or clause ( xiii ) of sub-section (2), by notice to that effect or where he ceases to participate by reason of failure to pay any contribution, by not reviving his participation, before contributions in respect of such participation have been paid for five years; or ( iii ) transfers the house property referred to in clause ( xv ) of sub-section (2) before the expiry of five years from the end of the financial year in which possession of such property is obtained by him, or receives back, whether by way of refund or otherwise, any sum specified in that clause, then,- ( a ) no deductio ..... 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