Income Tax Act, 1961
Section 7: Ins. by Act 18 of 1992, s. 43 (w.e.f. 11993).
7. Ins. by Act 18 of 1992, s. 43 (w.e.f. 11993).
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(3) Notwithstanding anything contained in any other provision of this Act, where a partition has taken
place among the members of a Hindu undivided family or where an association of persons has been
dissolved after a deduction has been allowed under sub-section (1), the provisions of sub-section (2) shall
apply as if the person in receipt of income referred to therein is the assessee.]
1[80CCC. Deduction in respect of contribution to certain pension funds.—(1) Where an assessee
being an individual has in the previous year paid or deposited any amount out of his income chargeable to
tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India 2[or
any other insurer] for receiving pension from the fund referred to in clause (23AAB) of section 10, he
shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the
computation of his total income, of the whole of the amount paid or deposited (excluding interest or
bonus accrued or credited to the assessee’s account, if any) as does not exceed the amount of 3[one
hundred and fifty thousand rupees] in the previous year.
(2) Where any amount standing to the credit of the assessee in a fund, referred to in sub-section (1) in
respect of which a deduction has been allowed under sub-section (1), together with the interest or bonus
accrued or credited to the assessee’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 or in 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 case may be, in that previous year in which such
withdrawal is made or, as the case may be, pension is received, and shall accordingly be chargeable to tax
as income of that previous year.
4[(3) Where any amount paid or deposited by the assessee has been taken into account for the
purposes of this section,—
(a) a rebate with reference to such amount shall not be allowed under section 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 under section 80C for any
assessment year beginning on or after the 1st day of April, 2006.]]
5[80CCD. Deduction in respect of contribution to pension scheme of Central Government.—(1)
6[Where an assessee, being an individual employed by the Central Government on or after the 1st day of
January, 2004 or, being an individual employed by any other employer], 7[or any other assessee, being an
individual] has in the previous year paid or deposited any amount in his account under a pension scheme
notified or as may be notified by the Central Government, he shall, in accordance with, and subject to, the
provisions of this section, be allowed a deduction in the computation of his total income, of the whole of
the amount so paid or deposited 8[as does not exceed,—
(a) in the case of an employee, ten per cent of his salary in the previous year; and
Notwithstanding anything contained in any other provision of this Act, where a partition has taken
place among the members of a Hindu undivided family or where an association of persons has been
dissolved after a deduction has been allowed under sub-section
shall
apply as if the person in receipt of income referred to therein is the assessee.]
1[80CCC. Deduction in respect of contribution to certain pension funds.—
Where an assessee
being an individual has in the previous year paid or deposited any amount out of his income chargeable to
tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India 2[or
any other insurer] for receiving pension from the fund referred to in clause
of section 10, he
shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the
computation of his total income, of the whole of the amount paid or deposited (excluding interest or
bonus accrued or credited to the assessee’s account, if any) as does not exceed the amount of 3[one
hundred and fifty thousand rupees] in the previous year.
Where any amount standing to the credit of the assessee in a fund, referred to in sub-section
in
respect of which a deduction has been allowed under sub-section
on account of the surrender of the annuity plan whether in whole or in part, in any previous
year, or
as pension received from the annuity plan,
an amount equal to the whole of the amount referred to in clause
or clause
shall be deemed to be
the income of the assessee or his nominee, as the case may be, in that previous year in which such
withdrawal is made or, as the case may be, pension is received, and shall accordingly be chargeable to tax
as income of that previous year.
4[
Where any amount paid or deposited by the assessee has been taken into account for the
purposes of this section,—
a rebate with reference to such amount shall not be allowed under section 88 for any
assessment year ending before the 1st day of April, 2006;
a deduction with reference to such amount shall not be allowed under section 80C for any
assessment year beginning on or after the 1st day of April, 2006.]]
5[80CCD. Deduction in respect of contribution to pension scheme of Central Government.—
6[Where an assessee, being an individual employed by the Central Government on or after the 1st day of
January, 2004 or, being an individual employed by any other employer], 7[or any other assessee, being an
individual] has in the previous year paid or deposited any amount in his account under a pension scheme
notified or as may be notified by the Central Government, he shall, in accordance with, and subject to, the
provisions of this section, be allowed a deduction in the computation of his total income, of the whole of
the amount so paid or deposited 8[as does not exceed,—
in the case of an employee, ten per cent of his salary in the previous year; and