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Difference between Section 80C and 80CCC of the Income Tax Act, 1961

The fundamental difference between Income Tax Section 80C and Section 80CCC is that under Section 80C, the sum to be paid may come from the income that isn't chargeable under tax.

  • 8,911 Views | Updated on: Mar 20, 2024

Section 80CCC of the Income Tax Act is a tax-benefit for individuals with taxable incomes - especially the ones that have an income that falls under the higher tax slab and they avail deductions that help them reduce their taxable income. It came into effect from the 1st April 1997.

However, before seeking the deductions under various heads and sub-heads, the earning professionals should briefly understand the difference between Section 80C and 80CCC of Income Tax. Eligible individuals can avail various deductions and limits under these two sections of the IT Act and use the benefits associated with them depending on the kind of investments and expenditures they have. As a citizen of India, the deductions under these sections, such as 80CCD and 80CCC, will reduce a person’s taxable pay and the subsequent assessment risk as well. The maximum limit for the deductible amount stands at ₹1.5 Lakhs.

Difference between Section 80C, 80CCC, 80CCD and 80D deductions of the Income Tax Act

Qualifications

Any person is qualified for tax on savings under sections 80C and 80CCC of the income tax act. However, Hindu Undivided Families (HUF) cannot avail these benefits. As per the Income Tax Department, a singular citizen is qualified to get these deductions up to ₹1,50,000 subject to the informed conditions. Further, the Central Board of Direct Taxes (CBDT) has referenced that the total amount of the deductions under Section 80C, Section 80CCC and Section 80CCD will not exceed INR 1,50,000, regardless of whether the assesse is a senior resident or a regular citizen.

Key Features

  • The classification under the deduction of 80CCC Income Tax should be identified with getting benefits mentioned under Section 10 (23AAB). The sum should be paid out of the pay chargeable to the liability. It ought to be noticed that allowance can’t exceed the available pay.
  • Rewards or interests acquired from the strategy are not qualified to be guaranteed as an assessment allowance under Section 80CCC of the Income Tax Act.
  • The pension fund is liable for taxes and is a part of the income that has been gained in the previous year.
  • The amount of the annuity plan’s surrender, regardless of whether it is whole or part, is chargeable.
  • The pension acquired from the annuity plan is chargeable under tax.

Distinction Between Sections 80C vs 80CCC

  • The fundamental difference between Income Tax Section 80C and Section 80CCC is that under Section 80C, the sum to be paid may come from the income that isn’t chargeable under tax.
  • People who have paid money in abundance and yet have put money into schemes of LIC, PPF, Mediclaim, or other insurance agencies might guarantee these allowances under the section and get a discount on the charges paid while filing their Income Tax Returns.
  • Residents and Non-Residents of India might get the allowances accessible under Section 80CCC. Be that as it may, by no means, a Hindu Undivided Family is qualified for allowances under this section.
  • An individual cannot get further exemptions after crossing the limit of ₹1.5 Lakhs under the benefits under Section 80C, Section 80CCC and 80CCD (1).

80C

80CCC

Deductions upto ₹ 1,50,000/- on taxable income

Tax deductions with respect to contributions made toward pension/annuity plans

Only HUFs and individuals can file under this section.

Only HUFs and individuals can file under this section.

Tax on savings is a feasible option that safeguards earning individuals so that they can reduce their taxes and make beneficial and rewarding expenditures and investments. Deductions are a reliable option that give rise to savings opportunities for a better tomorrow.

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

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