Income Tax Act, 2025
Section 1: Ins. by Act 21 of 2006, s. 16 (w.e.f. 12007).
1. Ins. by Act 21 of 2006, s. 16 (w.e.f. 12007).
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Explanation.—For the purposes of this clause, “scheduled bank” means the State Bank of India
constituted under the State Bank of India Act, 1955 (23 of 1955), or a subsidiary bank as defined in
the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), or a corresponding new bank
constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of 1980), or any other bank, being a bank included in the Second
Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);]
1[(xxii) as subscription to such bonds issued by the National Bank for Agriculture and Rural
Development, as the Central Government may, by notification in the Official Gazette, specify in this
behalf;]
2[(xxiii) in an account under the Senior Citizens Savings Scheme Rules, 2004;
(xxiv) as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.]
(3) The provisions of sub-section (2) shall apply only to so much of any premium or other payment
made on an 3[insurance policy, other than a contract for a deferred annuity, issued on or before the 31st
day of March, 2012,] as is not in excess of twenty per cent of the actual capital sum assured.
Explanation.—In calculating any such actual capital sum assured, no account shall be taken—
(i) of the value of any premiums agreed to be returned, or
(ii) of any benefit by way of bonus or otherwise over and above the sum actually assured, which
is to be or may be received under the policy by any person.
4[(3A) The provisions of sub-section (2) shall apply only to so much of any premium or other
payment made on an insurance policy, other than a contract for a deferred annuity, issued on or after the
1st day of April, 2012 as is not in excess of ten per cent of the actual capital sum assured:
5[Provided that where the policy, issued on or after the 1st day of April, 2013, is for insurance on life
of any person, who is—
(a) a person with disability or a person with severe disability as referred to in section 80U, or
(b) suffering from disease or ailment as specified in the rules made under section 80DDB,
the provisions of this sub-section shall have effect as if for the words “ten per cent.”, the words “fifteen
per cent.” had been substituted.]
Explanation.—For the purposes of this sub-section, “actual capital sum assured” in relation to a life
insurance policy shall mean the minimum amount assured under the policy on happening of the insured
event at any time during the term of the policy, not taking into account—
(i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the sum actually assured, which is
to be or may be received under the policy by any person.]
(4) The persons referred to in sub-section (2) shall be the following, namely:—
(a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-section,—
(i) in the case of an individual, the individual, the wife or husband and any child of such
individual, and
as subscription to such bonds issued by the National Bank for Agriculture and Rural
Development, as the Central Government may, by notification in the Official Gazette, specify in this
behalf;]
2[
in an account under the Senior Citizens Savings Scheme Rules, 2004;
as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.]
The provisions of sub-section
shall apply only to so much of any premium or other payment
made on an 3[insurance policy, other than a contract for a deferred annuity, issued on or before the 31st
day of March, 2012,] as is not in excess of twenty per cent of the actual capital sum assured.
Explanation.—In calculating any such actual capital sum assured, no account shall be taken—
of the value of any premiums agreed to be returned, or
of any benefit by way of bonus or otherwise over and above the sum actually assured, which
is to be or may be received under the policy by any person.
4[
The provisions of sub-section
shall apply only to so much of any premium or other
payment made on an insurance policy, other than a contract for a deferred annuity, issued on or after the
1st day of April, 2012 as is not in excess of ten per cent of the actual capital sum assured:
5[Provided that where the policy, issued on or after the 1st day of April, 2013, is for insurance on life
of any person, who is—
a person with disability or a person with severe disability as referred to in section 80U, or
suffering from disease or ailment as specified in the rules made under section 80DDB,
the provisions of this sub-section shall have effect as if for the words “ten per cent.”, the words “fifteen
per cent.” had been substituted.]
Explanation.—For the purposes of this sub-section, “actual capital sum assured” in relation to a life
insurance policy shall mean the minimum amount assured under the policy on happening of the insured
event at any time during the term of the policy, not taking into account—
the value of any premium agreed to be returned; or
any benefit by way of bonus or otherwise over and above the sum actually assured, which is
to be or may be received under the policy by any person.]
The persons referred to in sub-section
shall be the following, namely:—
for the purposes of clauses
and
of that sub-section,—
in the case of an individual, the individual, the wife or husband and any child of such
individual, and