Income Tax Act, 2025
Section 5: Subs. by Act 17 of 2013, s. 21, for “sections 88” (w.e.f. 12014).
5. Subs. by Act 17 of 2013, s. 21, for “sections 88” (w.e.f. 12014).
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(2) The aggregate amount of the deductions under 1[section 87A or section 88] or section
88A 2[or section 88B] 3[or section 88C] 4[or section 88D or section 88E] shall not, in any case, exceed the
amount of income-tax (as computed before allowing the deductions under this Chapter) on the total
income of the assessee with which he is chargeable for any assessment year.
5[87A. Rebate of income-tax in case of certain individuals.—An assessee, being an individual
resident in India, whose total income does not exceed 6[7[five hundred thousand] rupees], 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
hundred per cent of such income-tax or an amount of 8[9[twelve thousand and five hundred] rupees],
whichever is less.]
88. Rebate on life insurance premia, contribution to provident fund, etc.—10[(1) Subject to the
provisions of this section, an assessee, being an individual, or a Hindu undivided family, 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—
(i) in the case of an individual or a Hindu undivided family, whose gross total income before
giving effect to deductions under Chapter VI-A, is one lakh fifty thousand rupees or less, twenty per
cent of the aggregate of the sums referred to in sub-section (2):
Provided that an individual shall be entitled to a deduction of an amount equal to thirty per cent
of the aggregate of the sums referred to in sub-section (2) if his income under the head “Salaries”—
(a) does not exceed one lakh rupees during the previous year before allowing the deduction
under 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;
(ii) in the case of an individual or a Hindu undivided family, whose gross total income before
giving effect to deductions under Chapter VI-A, is more than one lakh fifty thousand rupees but does
not exceed five lakh rupees, fifteen per cent of the aggregate of the sums referred to in
sub-section (2);
(iii) in the case of an individual or a Hindu undivided family, whose gross total 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 deposited in the previous year by
the assessee 11***—
(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, 12[not being an annuity plan
referred to in clause (xiiia)], on the life of persons specified in sub-section (4):
The aggregate amount of the deductions under 1[section 87A or section 88] or section
88A 2[or section 88B] 3[or section 88C] 4[or section 88D or section 88E] shall not, in any case, exceed the
amount of income-tax (as computed before allowing the deductions under this Chapter) on the total
income of the assessee with which he is chargeable for any assessment year.
5[87A. Rebate of income-tax in case of certain individuals.—An assessee, being an individual
resident in India, whose total income does not exceed 6[7[five hundred thousand] rupees], 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
hundred per cent of such income-tax or an amount of 8[9[twelve thousand and five hundred] rupees],
whichever is less.]
88. Rebate on life insurance premia, contribution to provident fund, etc.—10[
Subject to the
provisions of this section, an assessee, being an individual, or a Hindu undivided family, 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—
in the case of an individual or a Hindu undivided family, whose gross total income before
giving effect to deductions under Chapter VI-A, is one lakh fifty thousand rupees or less, twenty per
cent of the aggregate of the sums referred to in sub-section
if his income under the head “Salaries”—
does not exceed one lakh rupees during the previous year before allowing the deduction
under section 16; and
is not less than ninety per cent of his gross total income, as defined in sub-section
of section 80B;
in the case of an individual or a Hindu undivided family, whose gross total income before
giving effect to deductions under Chapter VI-A, is more than one lakh fifty thousand rupees but does
not exceed five lakh rupees, fifteen per cent of the aggregate of the sums referred to in
sub-section
in the case of an individual or a Hindu undivided family, whose gross total income before
giving effect to deductions under Chapter VI-A, exceeds five lakh rupees, nil.]
The sums referred to in sub-section
shall be any sums paid or deposited in the previous year by
the assessee 11***—
to effect or to keep in force an insurance on the life of persons specified in sub-section
to effect or to keep in force a contract for a deferred annuity, 12[not being an annuity plan
referred to in clause