Under section 80CCC deduction is available to an individual for any amount paid or deposited by him in any annuity plan of LIC or any other insurer for receiving pension from a fund referred to in section 10 (23AAB).
Eligible Amount: Deposit or payment made to LIC or any other insurer in the approved annuity plan for receiving pension subject to a restriction of Rs. 1, 00, 000.
Relevant Conditions/Points for claiming deduction under section 80CCC:
1. The amount should be deposited or paid out of taxable income.
2. No deduction u/s. 80C is allowed on investment or expenditure on which deduction is claimed under this section (i.e. section 80CCC ).
3. Any amount withdrawn or pension received from the plan is taxable in the hands of the assessee or nominee in the year of receipt.
4. The amount of interest or bonus accrued or credited to the assessee’s account is not to be regarded as amount paid.
Extent of Deduction under section 80CCC: Least of amount paid or Rs. 1, 00,000/- .
After claiming deduction if the assessee or his nominee surrenders the annuity before the maturity date of such annuity, the surrender value shall be taxable in the hands of the assessee or his nominee, as the case may be, in the year of the receipt.
From assessment year 2012-2013 onwards the maximum amount deductible under section 80C, Section 80CCC and Section 80CCD (1) can not exceed Rs. 1, 00, 000.