Is LIC under 80CCC?
Is LIC under 80CCC?
The Section 80CCC deals with tax deductions on annuity plans from the Life Insurance Corporation of India (LIC) and other insurers. The scheme works in conjunction with Section 80C and Section 80CCD to give an overall tax deduction limit of Rs. 1.5 lakhs per year.
What is 80CCC of income tax?
Section 80CCC of the Income Tax Act of 1961 provides deductions of up to Rs. 1.5 lakhs per annum for contributions made by an individual towards specified pension funds that are offered by a life insurance. The deduction is within the limit of section 80C.
Can we claim both 80C and 80CCC?
For section 80C- The amount of eligible investment or expenditure as specified is fully allowed for deduction subject to the limit of Rs 1.5 lakh. The limit of Rs 1.5 lakh deduction of Section 80C includes 80CCC (contribution towards pension plan) and 80CCD (1), 80CCD (1b) and 80CCD (2).
What is income tax 80CCC?
Does VPF comes under 80CCC?
The existing EPF account will serve as the additional VPF account. Currently, the interest is accrued at 8.5% per annum under this scheme. Contributions up to 1.5 lakhs PA and interest accrued is exempt from tax under Section 80C, resulting in higher returns in a long-term perspective.
Who can claim 80CCC deduction?
Tax deduction under Section 80CCC can only be claimed by individual taxpayers who contribute towards any annuity plan offered by an insurance company. The individual taxpayer can be a resident and non-resident Indian. A HUF or Hindu Undivided Family (HUF) cannot claim tax benefits of this section.
Is VPF taxable in 2021?
It was announced in Budget 2021 that interest on Employees’ Provident Fund (EPF) and Voluntary Provident Fund (VPF) contributions above Rs 2.5 lakh in a financial year will be taxable. The Rs 2.5 lakh threshold is meant for non-government employees.
Can I claim deduction under both section 80C and 80CCC?
What comes under 80CCC and 80CCD?
Section 80CCCD (1) is a contribution towards the National pension scheme by the employee or self employed and is limited to 10% of salary (basisc + DA) or 20% of gross total income for self employed. Section 80CCD (1b) provides additional deduction of Rs 50,000 for contributions towards NPS , Atal pension Yojana etc.
What is the limit for deductions under Section 80CCC?
Section 80CCC of the Income Tax Act of 1961 provides deductions of up to Rs. 1.5 lakhs per annum for contributions made by an individual towards specified pension funds that are offered by a life insurance. The deduction is within the limit of section 80C. What is Section 80CCC
What does Section 80CCC of Income Tax Act 1961 do?
The Section 80CCC of Income Tax Act 1961, helps you to claim tax deductions for the pension funds in which you have invested. Section 80CCC lets you claim a maximum of Rs 1,50,000 during a particular year, which will include the cost involved in buying a new policy or renewing an existing policy.
Can a NRI claim tax deduction under 80CCC?
Yes, Non-Resident Indians (NRIs) can claim deduction under Section 80CCC of the Income Tax Act, 1961, for contribution made to pension funds, which are referred to under Section 10 (23AAB). HUFs are not permitted to claim deduction under this section.
What are the benefits of Section 80CCC in India?
Section 80CCC of the Income Tax Act provides individuals with income tax benefits for an annuity plan with a pension fund they may be holding with a life insurer in India.
