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Lic annuity plan 80 ccc deductability

Ram (NA) (98 Points)

30 March 2018

Can anyone please tell me. If a father gifts his son Rs 1.5 lakhs and its used to pay for an LIC pension fund. Can the son show it as tax deductible under 80 CCC.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194284 Points)
Replied 30 March 2018

Yes,

Investment in a pension plan from an insurance company is eligible for deduction up to a maximum of Rs 1.5 lacs per financial year under Section 80 CCC of the Income Tax Act.

The tax benefit under Section 80CCC is NOT over and above Section 80C tax benefit of Rs 1.5 lacs per financial year.

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Ram (NA) (98 Points)
Replied 30 March 2018

Thank you. One clarification. Can the deduction be claimed by the Son in whose name the pension plan is taken. While the money to purchase the plan is given by the father as gift to the son?