India - Income Tax Act 2010 - Saarc

1.513 CH. VIII - REBATES AND RELIEFS S. 88(i) in the case of an individual or a Hindu undivided family, whose grosstotal income before giving effect to deductions under Chapter VI-A,is one lakh fifty thousand rupees or less, twenty per cent of theaggregate of the sums referred to in sub-section (2):Provided that an individual shall be entitled to a deduction of anamount equal to thirty per cent of the aggregate of the sums referredto in sub-section (2) if his income under the head “Salaries”—(a) does not exceed one lakh rupees during the previous year beforeallowing the deduction under section 16; and(b) is not less than ninety per cent of his gross total income, as definedin sub-section (5) of section 80B;(ii) in the case of an individual or a Hindu undivided family, whose grosstotal income before giving effect to deductions under Chapter VI-A,is more than one lakh fifty thousand rupees but does not exceed fivelakh rupees, fifteen per cent of the aggregate of the sums referred toin sub-section (2);(iii) in the case of an individual or a Hindu undivided family, whose grosstotal 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 depositedin the previous year by the assessee 56 [***]—(i) to effect or to keep in force an insurance on the life of personsspecified in sub-section (4);(ii) to effect or to keep in force a contract for a deferred annuity, 57 [notbeing an annuity plan referred to in clause (xiiia)], on the life ofpersons specified in sub-section (4) :(Contd. from p. 1.512)shall be entitled to a deduction, from the amount of income-tax (as computed beforeallowing the deductions under this Chapter) on his total income with which he ischargeable for any assessment year, of an amount equal to twenty per cent of theaggregate of the sums referred to in sub-section (2) :Provided that in the case of an individual, whose income, derived from the exercise of hisprofession as an author, playwright, artist, musician, actor or sportsman (including anathlete), is twenty-five per cent or more of his total income, the provisions of this subsectionshall have effect as if for the words “twenty per cent”, the words “twenty-five percent” had been substituted :Provided further that an individual shall be entitled to a deduction of an amount equal tothirty per cent of the aggregate of the sums referred to in sub-section (2) if his incomechargeable under the head “Salaries”—(a) does not exceed one lakh rupees during the previous year before allowing deductionunder 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.’56. Words “out of his income chargeable to tax” omitted by the Finance Act, 2002, w.e.f.1-4-2003.57. Substituted for “not being an annuity plan referred to in clause (ii) of sub-section (1) ofsection 80CCA” by the Finance Act, 1992, w.e.f. 1-4-1993.