9911796707
TMI BlogAmendment of chapter VIIIX X X X Extracts X X X X X X X X Extracts X X X X ..... life insurance premia, contribution to provident fund, etc. - (1) Subject to the provisions of this section, an assessee, being - (a) an individual, or (b) a Hindu undivided family, or (c) an association of persons or a body of individuals consisting, in either case, only of husband and wife governed by the system of community of property in force in the State of Goa and the Union territories of Dadra and Nagar Haveli and Daman and Diu, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to twenty per cent. of the aggregate of sums referred to in sub-section (2). (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee out of his income chargeable to tax - (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, not being an annuity plan referred to in clause (ii) of sub-section (1) of section 80CCA, on the life of persons specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (23D) of section 10, as the Central Government may, by notification in the Official Gazette, specify in this behalf; (xiv) as subscription to any such deposit scheme of 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 National Housing Bank), as the Central Government may, by notification in the Official Gazette, specify in this behalf; (xv) for the purposes of purchase or construction of a residential house property the construction of which is completed after the 31st day of March, 1987, and the income from which is chargeable to tax under the head "Income from house property" (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of - (a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or (b) any instalment or part payment of the amount due to any company or co-o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital 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. (4) The persons referred to in sub-section (2) shall be the following, namely :- (a) for the purposes of clause (i) of that sub-section, - (i) in the case of an individual, the individual, the wife or husband and any child of such individual, and (ii) in any other case, any member of the Hindu undivided family or association of persons or body of individuals and any child of any of the members of such association or body; (b) for the purposes of clause (ii) of that sub-section, - (i) in the case of an individual, the individual, the wife or husband and any child of such individual, and (ii) in the case of an association of persons or body of individuals, any member and any child of any of the members of such association or body; (c) for the purposes of clauses (v) and (viii) of that sub-section, - (i) in the case of an individual, such individual or a minor of whom he is the guardian; (ii) in the case of a Hin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and shall be added to the tax on the total income of the assessee with which he is chargeable for such assessment year. (8) In this section, - (i) "contribution" to any fund shall not include any sums in repayment of loan; (ii) "insurance" shall include - (a) a policy of insurance on the life of an individual or the spouse or the child of such individual or a member of a Hindu undivided family securing the payment of specified sum on the stipulated date of maturity, if such person is alive on such date notwithstanding that the policy of insurance provides only for the return of premiums paid (with or without any interest thereon) in the event of such person dying before the said stipulated date; (b) a policy of insurance effected by an individual or a member of a Hindu undivided family for the benefit of a minor with the object of enabling the minor, after he has attained majority to secure insurance on his own life by adopting the policy and on his being alive on a date (after such adoption) specified in the policy in this behalf; (iii) "Life Insurance Corporation" means the Life Insurance Corporation of India established under the Life In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, if any, remaining unpaid on such shares or units, the amount so paid shall be deemed to have been paid by the assessee towards the cost of such shares or units in the previous year. (2) Where the aggregate cost to the assessee of the shares or units referred to in sub-section (1) which are acquired by him in the previous year exceeds twenty-five thousand rupees, the deduction under that sub-section shall be allowed only with reference to such of those shares or units (being shares or units the aggregate cost whereof to the assessee does not exceed twenty-five thousand rupees) as are specified by him in this behalf. (3) For the purposes of this section, "eligible issue of capital" means an issue of equity shares which satisfies the following conditions, namely :- (a) the issue is made by a public company formed and registered in India and the issue is wholly and exclusively for the purposes of carrying on the business of - (i) construction, manufacture or production of any article or thing, not being an article or thing specified in the list in the Eleventh Schedule; or (ii) providing long-term finance for construction or purchase of houses in India for reside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h underwriter. (5) If any equity shares or units, with reference to the cost of which a deduction is allowed under sub-section (1), are sold or otherwise transferred by the assessee to any person at any time within a period of three years from the date of their acquisition, the aggregate amount of the deductions of income-tax so allowed in respect of such equity shares or units in the previous year or years preceding the previous year in which such sale or transfer has taken place shall be deemed to be tax payable by the assessee for the assessment year relevant to such previous year and shall be added to the amount of income-tax on the total income of the assessee with which he is chargeable for such assessment year. Explanation : A person shall be treated as having acquired any shares or units on the date on which his name is entered in relation to those shares or units in the register of members of the company or in the relevant records of any Mutual Fund or Unit Trust of India, referred to in sub-section (1). (6) Where a deduction is claimed and allowed under sub-section (1) with reference to the cost of any equity shares, the cost of such shares shall not be taken into a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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