Income Tax Act, 2025
Section 2: Ins. by Act 18 of 2008, s. 16 (w.e.f. 12008).
2. Ins. by Act 18 of 2008, s. 16 (w.e.f. 12008).
334
assessee of the previous year in which the amount is withdrawn and shall be liable to tax in the
assessment year relevant to such previous year:
Provided that the amount liable to tax shall not include the following amounts, namely:—
(i) any amount of interest, relating to deposits referred to in clause (xxiii) or clause (xxiv) of
sub-section (2), which has been included in the total income of the assessee of the previous year or
years preceding such previous year; and
(ii) any amount received by the nominee or legal heir of the assessee, on the death of such
assessee, other than interest, if any, accrued thereon, which was not included in the total income of
the assessee for the previous year or years preceding such previous year.]
(7) For the purposes of this section,—
(a) the insurance, deferred annuity, provident fund and superannuation fund referred to in
clauses (i) to (vii);
(b) unit-linked insurance plan and annuity plan referred to in clauses (xii) to (xiiia);
(c) pension fund and subscription to deposit scheme referred to in clauses (xiiic) to (xiva);
(d) amount borrowed for purchase or construction of a residential house referred to in clause (xv),
of sub-section (2) of section 88 shall be eligible for deduction under the corresponding provisions of this
section and the deduction shall be allowed in accordance with the provisions of this section.
(8) In this section,—
(i) “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit
Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(ii) “contribution” to any fund shall not include any sums in repayment of loan;
(iii) “insurance” shall include—
(a) a policy of insurance on the life of an individual or the spouse or the child of such
individual or a member of a Hindu undivided family securing the payment of specified sum on
the stipulated date of maturity, if such person is alive on such date notwithstanding that the policy
of insurance provides only for the return of premiums paid (with or without any interest thereon)
in the event of such person dying before the said stipulated date;
(b) a policy of insurance effected by an individual or a member of a Hindu undivided family
for the benefit of a minor with the object of enabling the minor, after he has attained majority to
secure insurance on his own life by adopting the policy and on his being alive on a date (after
such adoption) specified in the policy in this behalf;
(iv) “Life Insurance Corporation” means the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956);
(v) “public company” shall have the same meaning as in section 3 of the Companies
Act, 1956 (1 of 1956);
(vi) “security” means a Government security as defined in clause (2) of section 2 of the Public
Debt Act, 1944 (18 of 1944);
(vii) “specified company” means a company as referred to in clause (h) of section 2 of the Unit
Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(viii) “transfer” shall be deemed to include also the transactions referred to in clause (f) of
section 269UA.]
335
80CC. [Deduction in respect of investment in certain new shares].—Omitted by the
Finance (No. 2) Act, 1996 (33 of 1996), s. 22 (w.e.f. 11993).
1[80CCA. Deduction in respect of deposits under National Savings Scheme or payment to a
deferred annuity plan.—(1) Where an assessee, being—
(a) an individual, or
(b) a Hindu undivided family, 2***
3* * * * *
has in the previous year—
(i) deposited any amount in accordance with such scheme as the Central Government may, by
notification in the Official Gazette, specify in this behalf 4***; or
(ii) paid any amount to effect or to keep in force a contract for such annuity plan of the Life
Insurance Corporation as the Central Government may, by notification in the Official Gazette,
specify,
out of his income chargeable to tax, 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
deposited or paid (excluding interest or bonus accrued or credited to the assessee’s account, if any) as
does not exceed the amount of twenty thousand rupees in the previous year:
5[Provided that in relation to—
(a) the assessment years commencing on the 1st day of April, 1989 and the 1st day of April,
1990, this sub-section shall have effect as if for the words “twenty thousand rupees”, the words
“thirty thousand rupees” had been substituted;
(b) the assessment year commencing on the 1st day of April, 1991 and subsequent assessment
years, this sub-section shall have effect as if for the words “twenty thousand rupees”, the words “forty
thousand rupees” had been substituted:]
6[Provided further that no deduction under this sub-section shall be allowed in relation to any
amount deposited or paid under clauses (i) and (ii) on or after the 1st day of April, 1992.]
(2) Where any amount—
(a) standing to the credit of the assessee 7[under the scheme referred to in clause (i) of
sub-section (1)] in respect of which a deduction has been allowed under sub-section (1) together with
the interest accrued on such amount is withdrawn in whole or in part in any previous year, or
(b) is received on account of the surrender of the policy or as annuity or bonus in accordance with
the annuity plan of the Life Insurance Corporation in any previous year,
any amount of interest, relating to deposits referred to in clause
or clause
of
sub-section
any amount received by the nominee or legal heir of the assessee, on the death of such
assessee, other than interest, if any, accrued thereon, which was not included in the total income of
the assessee for the previous year or years preceding such previous year.]
For the purposes of this section,—
the insurance, deferred annuity, provident fund and superannuation fund referred to in
clauses
to
unit-linked insurance plan and annuity plan referred to in clauses
to
pension fund and subscription to deposit scheme referred to in clauses
to
amount borrowed for purchase or construction of a residential house referred to in clause
of section 88 shall be eligible for deduction under the corresponding provisions of this
section and the deduction shall be allowed in accordance with the provisions of this section.
In this section,—
“Administrator” means the Administrator as referred to in clause
of section 2 of the Unit
Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
“contribution” to any fund shall not include any sums in repayment of loan;
“insurance” shall include—
a policy of insurance on the life of an individual or the spouse or the child of such
individual or a member of a Hindu undivided family securing the payment of specified sum on
the stipulated date of maturity, if such person is alive on such date notwithstanding that the policy
of insurance provides only for the return of premiums paid (with or without any interest thereon)
in the event of such person dying before the said stipulated date;
a policy of insurance effected by an individual or a member of a Hindu undivided family
for the benefit of a minor with the object of enabling the minor, after he has attained majority to
secure insurance on his own life by adopting the policy and on his being alive on a date (after
such adoption) specified in the policy in this behalf;
“Life Insurance Corporation” means the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956);
“public company” shall have the same meaning as in section 3 of the Companies
Act, 1956 (1 of 1956);
“security” means a Government security as defined in clause
of section 2 of the Public
Debt Act, 1944 (18 of 1944);
“specified company” means a company as referred to in clause
of section 2 of the Unit
Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
“transfer” shall be deemed to include also the transactions referred to in clause
of
section 269UA.]
335
80CC. [Deduction in respect of investment in certain new shares].—Omitted by the
Finance (No. 2) Act, 1996 (33 of 1996), s. 22 (w.e.f. 11993).
1[80CCA. Deduction in respect of deposits under National Savings Scheme or payment to a
deferred annuity plan.—
Where an assessee, being—
an individual, or
a Hindu undivided family, 2***
3* * * * *
has in the previous year—
deposited any amount in accordance with such scheme as the Central Government may, by
notification in the Official Gazette, specify in this behalf 4***; or
paid any amount to effect or to keep in force a contract for such annuity plan of the Life
Insurance Corporation as the Central Government may, by notification in the Official Gazette,
specify,
out of his income chargeable to tax, 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
deposited or paid (excluding interest or bonus accrued or credited to the assessee’s account, if any) as
does not exceed the amount of twenty thousand rupees in the previous year:
5[Provided that in relation to—
the assessment years commencing on the 1st day of April, 1989 and the 1st day of April,
1990, this sub-section shall have effect as if for the words “twenty thousand rupees”, the words
“thirty thousand rupees” had been substituted;
the assessment year commencing on the 1st day of April, 1991 and subsequent assessment
years, this sub-section shall have effect as if for the words “twenty thousand rupees”, the words “forty
thousand rupees” had been substituted:]
6[Provided further that no deduction under this sub-section shall be allowed in relation to any
amount deposited or paid under clauses
and
on or after the 1st day of April, 1992.]
Where any amount—
standing to the credit of the assessee 7[under the scheme referred to in clause
of
sub-section
together with
the interest accrued on such amount is withdrawn in whole or in part in any previous year, or
is received on account of the surrender of the policy or as annuity or bonus in accordance with
the annuity plan of the Life Insurance Corporation in any previous year,