INCOME TAX DEDUCTIONS FOR CONTRIBUTION TO PENSION FUNDS U/S 80CCC & 80CCD

INCOME TAX DEDUCTIONS FOR CONTRIBUTION TO PENSION FUNDS U/S 80CCC & 80CCD

Deduction under Section 80CCC and Sec 80CCD are income tax deductions which are allowed for payment of any amount to initiate or to continue any annuity plan of any insurance company for receiving any pension, the individual would be allowed a deduction for the amount paid under Section 80CCC.

And in case the individual has made the contribution to notified pension scheme of the Central Govt i.e. the National Pension Scheme (NPS), the individual would be allowed a deduction under Section 80CCD.

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Section 80CCC: Deduction for Contribution to Pension FundsSection 80CCD: Deduction for Contribution to National Pension Scheme

The maximum amount allowed to be claimed as a deduction under this section 80C and Section 80CCC is Rs. 1,50,000 for each financial year.

From financial year 2015-16 onwards, anadditional deduction of Rs. 50,000 is allowed for investment in NPS Account. This additional deduction of Rs. 50,000 is over and above the deduction allowed to be claimed under Section 80C and Section 80CCC.

In other words, the cumulative total of these should not exceed Rs. 2,00,000.