Income Tax Act, 2025
Section 5: Ins. by Act 26 of 1997, s. 30 (w.e.f. 11998).
5. Ins. by Act 26 of 1997, s. 30 (w.e.f. 11998).
6. Subs. by Act 32 of 2003, s. 47, for the Explanation (w.e.f. 12004). Earlier it was amended by Act 33 of 1996, s. 34
(w.e.f. 11997), Act 26 of 1997, s. 30 (w.e.f. 11998), Act 27 of 1999, s. 90 (w.e.f. 12000).
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(xvii) as subscription to any units of any mutual fund referred to in clause (23D) of section 10 and
approved by the Board on an application made by such mutual fund in the prescribed form:
Provided that where a deduction is claimed and allowed under this clause with reference to the
cost of units, the cost of such units shall not be taken into account for the purposes of sections
54EA and 54EB:
Provided further that this clause shall apply if the amount of subscription to such units is
subscribed only in the eligible issue of capital of any company.
Explanation.—For the purposes of this clause “eligible issue of capital” means an issue referred
to in clause (i) of the Explanation to clause (xvi) of sub-section (2) of section 88.
1[(2A) 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 as is not in excess of
twenty per cent of the actual capital sum assured.
Explanation.—In calculating any such actual capital sum, 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.]
2[(3) The sums referred to in sub-section (2) shall be paid or deposited at any time during the previous
year, and the assessee, being an individual or a Hindu undivided family, shall be entitled to a deduction
under sub-section (1) on so much of the aggregate of such sums paid or deposited as does not exceed the
total income of the assessee, chargeable to tax during the relevant previous year.]
(4) The persons referred to in sub-section (2) shall be the following, namely:—
3[(a) for the purposes of clauses (i), (v), (xii) and (xiii) of that sub-section,—
(i) in the case of an individual, the individual, the wife or husband and any child of such
individual, and
(ii) in the case of a Hindu undivided family, any member thereof;]
(b) for the purposes of clause (ii) of that sub-section,—
(i) in the case of an individual, the individual, the wife or husband and any child of such
individual, and
4* * * * *
(c) for the purposes of 5[clause (viii)] of that sub-section,—
(i) in the case of an individual, such individual or a minor of whom he is the guardian;
(ii) in the case of a Hindu undivided family, any member of the family;
as subscription to any units of any mutual fund referred to in clause
of section 10 and
approved by the Board on an application made by such mutual fund in the prescribed form:
Provided that where a deduction is claimed and allowed under this clause with reference to the
cost of units, the cost of such units shall not be taken into account for the purposes of sections
54EA and 54EB:
Provided further that this clause shall apply if the amount of subscription to such units is
subscribed only in the eligible issue of capital of any company.
Explanation.—For the purposes of this clause “eligible issue of capital” means an issue referred
to in clause
of the Explanation to clause
of sub-section
of section 88.
1[
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 as is not in excess of
twenty per cent of the actual capital sum assured.
Explanation.—In calculating any such actual capital sum, 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.]
2[
The sums referred to in sub-section
shall be paid or deposited at any time during the previous
year, and the assessee, being an individual or a Hindu undivided family, shall be entitled to a deduction
under sub-section
on so much of the aggregate of such sums paid or deposited as does not exceed the
total income of the assessee, chargeable to tax during the relevant previous year.]
The persons referred to in sub-section
shall be the following, namely:—
3[
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
in the case of a Hindu undivided family, any member thereof;]
for the purposes of clause
of that sub-section,—
in the case of an individual, the individual, the wife or husband and any child of such
individual, and
4* * * * *
for the purposes of 5[clause
in the case of an individual, such individual or a minor of whom he is the guardian;
in the case of a Hindu undivided family, any member of the family;