Tax law, change in ded. of chapter VI-a ie 80C to 80U
Section 80CCC has been inserted with effect from the assessment year 1997-98. This section provides a deduction to an individual for any amount paid or deposited by him to effect or keep in force any annuity plan of the Life Insurance Corporation of India or any other insurer (including Private sector Life Insurance Companies) for receiving pension from a fund set up by the said Insurer, referred to in section 10(23AAB). The deduction shall be restricted upto Rs. 1,00,000 U/S 80C.
Where the assessee or his nominee surrenders the annuity before the maturity date of such annuity, the surrender value shall be taxable in the hands of the assessee or his nominee, as the case may be in the year of the receipt.
The amount received by the assessee or his nominee as pension will be taxable, in the hands of the assessee or his nominee, as the case may be in the year of the receipt.
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