India - Income Tax Act 2010 - Saarc

1.393 CH. VI-A - DEDUCTIONS IN RESPECT OF CERTAIN PAYMENTS S. 80CCDor keep in force a contract for any annuity plan of Life Insurance Corporationof India 57 [or any other insurer] for receiving pension from the fund referred toin clause (23AAB) of section 10, he shall, in accordance with, and subject to, theprovisions of this section, be allowed a deduction in the computation of his totalincome, of the whole of the amount paid or deposited (excluding interest orbonus accrued or credited to the assessee’s account, if any) as does not exceedthe amount of 58 [one lakh] rupees in the previous year.(2) Where any amount standing to the credit of the assessee in a fund, referredto in sub-section (1) in respect of which a deduction has been allowed under subsection(1), together with the interest or bonus accrued or credited to theassessee’s account, if any, is received by the assessee or his nominee—(a) on account of the surrender of the annuity plan whether in whole orin part, in any previous year, or(b) as pension received from the annuity plan,an amount equal to the whole of the amount referred to in clause (a) or clause(b) shall be deemed to be the income of the assessee or his nominee, as the casemay be, in that previous year in which such withdrawal is made or, as the casemay be, pension is received, and shall accordingly be chargeable to tax as incomeof that previous year.59[(3) Where any amount paid or deposited by the assessee has been taken intoaccount for the purposes of this section,—(a) a rebate with reference to such amount shall not be allowed undersection 88 for any assessment year ending before the 1st day of April,2006;(b) a deduction with reference to such amount shall not be allowed undersection 80C for any assessment year beginning on or after the 1st dayof April, 2006.]]60[Deduction in respect of contribution to pension scheme of Central Government.60a80CCD. (1) Where an assessee, being an individual employed by the CentralGovernment 61 [or any other employer] on or after the 1st day ofJanuary, 2004, 62 [or any other assessee, being an individual ] has in the previousyear paid or deposited any amount in his account under a pension schemenotified or as may be notified by the Central Government, he shall, in accordancewith, and subject to, the provisions of this section, be allowed a deduction in the57. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002.58. Substituted for “ten thousand” by the Finance Act, 2006, w.e.f. 1-4-2007.59. Substituted by the Finance Act, 2005, w.e.f. 1-4-2006. Prior to its substitution, sub-section(3) read as under :“(3) Where any amount paid or deposited by the assessee has been taken into account forthe purposes of this section, a rebate with reference to such amount shall not be allowedunder section 88.”60. Inserted by the Finance (No. 2) Act, 2004, w.r.e.f. 1-4-2004.60a. See Circular No. 1/2010, dated 11-1-2010 as well as Circular F. No. 275/192/2009-IT(B),dated 9-2-2010. For details see Taxmann’s Master Guide to Income-tax Act.61. Inserted by the Finance Act, 2007, w.r.e.f. 1-4-2004.62. Inserted by the Finance (No. 2) Act, 2009, w.r.e.f. 1-4-2009.