Income Tax Section 80cc

Deductions allowed under the income tax act help you reduce your taxable income.

Income tax section 80cc. Section 80ccc of the income tax act 1961 allows individuals to claim tax deductions for contributions made to certain pension funds. While most of us have an idea about commonly known options but tax saving can be challenging for a young newly recruited employee. The primary condition for availing this exemption is that the policy for which the money has been spent must be providing a pension or a periodical annuity.

Section 80ccc income tax deduction is with respect to the contributions made towards pension plans by an individual. The most widely used option to save income tax is section 80c of the income tax act. The income tax department appeals to taxpayers not to respond to such e mails and not to share information relating to their credit card bank and other financial accounts.

Section 80c in india was designed to offer exhaustive contents as a result it made tax planning a bit cumbersome. Deduction under section 80ccc deduction in respect of contribution to certain pension funds. Section 80ccc of the income tax act provides an income tax exemption for payments and deposits made for any annuity plan of lic or any other insurer.

That s how section 80c was divided into many subsections one such being section 80ccc. Deduction is available upto a maximum of rs. Section 80c of the income tax act provides provisions for tax deductions on a number of payments with both individuals and hindu undivided families eligible for these deductions.

There are a number of deductions available under various sections that will bring down your taxable income. You can avail the deductions only if you have made tax saving investments or incurred eligible expenses. Section 80ccc of income tax act deals with the deductions and income in respect of contributions to certain pension funds by an individual assessee payment of premium for annuity plan of lic or any other insurer.

The section 80ccc exemption limit includes the money spent on the purchase of a new policy or payments made towards renewal or continuation of an existing policy. Every year most of us struggle to save taxes.