Pension
scheme provides social security to a person in his old age. With a view to
making the pension scheme popular, Union Government allowed deduction under
Section 80CCC in respect of contribution made towards any annuity plan of LIC
of India or any other insurer for receiving pension (maximum limit Rs. 1,50,000
*).
Further,
deduction under Section 80CCD, with effect from A.Y. 2004-05, has been
incorporated for Government employees in respect of amount contributed by them
in the pension fund subject to maximum of 10% of salary.
Further,
the tax benefit in respect of deduction under Section 80CCD has been extended
even to self employed persons subject to 10% of GTI with effect from A.Y.
2009-10. It can be considered as a major development for the establishment of
social security system.
*Section
80 CCE provides that aggregate amount of deduction under section 80C, 80CCC and
80CCD shall not exceed Rs. 1,50,000 from FY 2014-15 (AY 2-15-16).
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