Lic annuity plan 80 ccc deductability

Tax queries 234 views 4 replies

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. 
 

Replies (4)

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.

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?

Father gifted the amount to son........

Son invests the amount in annuity plan.....

Both activities are independent, when the son pays the amount to LIC through his cheque/account.........

Now, recalculate........

No, Ur Son can't claim deduction u/s 80CCC , Since such deduction is available only if investment is made out of TAXABLE INCOME.


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