Income Tax Deduction Under Section 80CCC In India
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Income Tax Deduction Under Section 80CCC In India

Income Tax Deduction Under Section 80CCC In India
  • 1st Oct 2021 |
  • 1,345

From a very young age, we are taught about the importance of planning and investing in our future. As we grow and start earning, we begin the hunt for different policies available that can help us make our retirement years peaceful and stress-free. Investing in such plans becomes even more fruitful when we get benefits from them not only in the future but also in the present.

When we think of any term insurance policy or retirement plan, tax benefits always prove to be one of the most valued benefits offered. No discussion about tax saving policies in India can be complete without the mention of Section 80CCC of the Income Tax Act, 1961. This section is read along with Section 80C and Section 80CCD(1) to determine the total exemption value.

A Blessing for Tax-Payers

Answering what is 80CCC in Income Tax Act can be quite daunting for those not well-versed with its nitty-gritties. To put it rather simply, section 80CCC of Income Tax Act provides us with the opportunity to claim certain tax deductions on the money invested in a pension plan or a pension fund. These deductions can be claimed on our current income on the purchase or the renewal of the policy in the applicable financial year. However, we cannot claim deductions under 80ccc in the years we do not pay for the contribution into the policy. In other words, we can only claim the deduction as long as we are actively paying for the fund and not the entire duration of their coverage.

There are certain criteria for the fund, which include:

  • The fund must have been set up on or after 1st August, 1996.
  • The fund must be listed in clause 23AAB of section 10 of the Income Tax Act.
  • It can be by any listed insurer.

Depending on the payment plan we choose, payment can be made either annually or all at once, and this expenditure is usually from our taxable income. The provisions under the Section 80CCC of the Income Tax Act is what allows us to claim deduction on this tax and get what is commonly called the tax rebate. It is important to note that the pension, annuity, any bonuses or interests are still taxable and cannot be claimed for deduction.

Eligibility for Claiming Deduction under 80CCC

  • Any individual taxpayer can claim deduction under 80CCC as long as they have invested in a pension or annuity plan, except for HUF (Hindu Undivided Family).
  • Any resident or nonresident can also claim deduction under 80CCC as long as they have invested in a pension fund.

The maximum deduction under 80CCC Income Tax Act is Rs.1,50,000. As already mentioned, this section is read along with two other sections 80C and 80CCD, accounting for the total deduction.

Income tax rebates have been made more accessible and easier with these provisions which often act as incentives to those investing in various avenues. Section 80CCC is undoubtedly an effective way to reduce our tax burden by investing in a plan that provides financial security during retirement. All you should do is keep track of the amount paid towards your annuity to claim a deduction under this section.

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Browse our library of resources

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Tax Benefits for Startups in India

What Investment Options Come with Tax Incentives?

How do I Calculate My Term Insurance Premium

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

What is TDS Slab?

TDS Due Dates of FY 2020-21 For Return Filing

What is the Difference between Form 16 and Form 16A?

How to Claim TDS Refund for Excess TDS Deduction?

धारा 80डी आयकर अधिनियम, 1961

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

Problems People Face with Tax Returns after a Job Change

A Complete Guide for Filing ITR 3 Form

All about TDS Payment Online & Due Dates

Financial Planning and Best investment options for Housewives

Save Income Tax by 31st March: Here Is a Checklist

Budget 2019: Impact on the Common Man in India

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

What is Section 80C Deduction?

Why is Form 16 Important?

Top 8 Tax-Saving Methods in India- Budget Planning

Section 44AD of Income Tax Act for AY 2020-21

How to Get Form 16?

Tax-Free Income in India

ITR 2 Form – Complete Guide

Role of Life Insurance in Your Financial Portfolio

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Tax-Savings Investments and Options in India

How to File Form 16 for Salaried Employees?

E-Filing of Income Tax Returns in India

How To Save Tax Using Life Insurance?

Tax Planning and Tax Benefits of Life Insurance

What is TDS Exemption Limit?

Have You Considered Term Insurance a Part of Your Tax Planning?

Why Tax Planning Should Be an All-year Round Activity

Tax Deductions You MUST Know

Investing Lump Sum Amount

List of Important Income Tax FAQs

5 Unusual Investments You Didn't Know for Saving Taxes in India

Income Tax Deductions for Disabled Person Under Section 80U

9 Point Guide on how to File Income Tax Return Online

Presumptive Taxation for Business and Profession

ITR 1: Sahaj Form

Tax Saving Options for Salaried Employees

Things to Do After Filing Income Tax Returns

What To Do If Your TDS Is Not Deposited With The Government?

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

What is Challan 280? How to Pay your Income Tax Online with Challan 280?

How to File TDS Return?

Are Financial Planning and Tax Planning the Same Thing?

How to Save Tax on Salary Arrears?

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

Income Tax Filing For NRI in India

How to Check Income Tax Refund Status Online in India

Income Tax Exemption for Physically Handicapped Dependent

What is Section 10D of the Income Tax Act?

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22

How to File ITR Online

Can You Get Term Insurance Without Income Proof?

How to Save Income Tax with Insurance

How Much Money This Budget 2019 Can Help You Save

Guide for Tax Calculation on your Salary

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Impact of GST on Life Insurance in India

How can I get Form 16B from traces?

How To Save Tax Better with 80C

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

All You Need to Know About Section 80C

Difference Between Gross Income & Total Income in Calculating Income Tax

Financial Benefits and Government Schemes Every Woman in India Should Know

Tips to plan your savings in 2019

What is Form 26AS - All You Need To Know

Tax Benefits of ULIP Plans Available for NRIs

How to file Form 16 online?

Tax Saving for Self Employed in India

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

How to Check Income Tax Refund Status Online in India

9 Income Tax Myths That Could Cost You Money while Filing returns

Pradhan Mantri Suraksha Bima Yojana

What is Section 80C Deduction Limit?

Difference between Section 80C, 80CCC, 80CCD & 80D

What is Tax Deduction at Source (TDS)?

What is ITR & How to File Income Tax Return

Saving Income tax in 2017 - 18

Section 16 of the Income Tax Act (ITA), 1961

All about Online Income Tax Calculator

Income Tax Deductions Under Section 80C

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

Understanding Tax Exemptions in ULIP (Old and New)

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

Tax Saving Tips: Best Ways to Save Income Tax for 2021

Do Beneficiaries Pay Taxes on Life Insurance?

What is the Difference Direct Tax and Indirect Tax

What is Section 80CCC of the Income Tax Act 1961

How to File Income Tax Return for First Time Tax Payers

How to save tax for salaried person?

Income Tax Benefits for Doctors

Why January Is an Important Month for Saving Tax?

Penalty For Late Filing TDS Return

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

What is the Percentage of Tax Deducted at Source (TDS)?

Union Budget Highlights – 1st February 2022

Sub-sections Under Section 80C of the Income Tax Act, 1961

धारा 80सी आयकर अधिनियम, 1961

When Should TDS be Deducted and Who is Liable to Deduct it?

Tax Saving Guide for 2019-20

Section 80E: Tax Exemption on Interest on Education Loan

Tax Benefit of Investing in Term Plan

What Is Advance Tax and How Is It Calculated?

How to File Form 10E for Tax Relief on Salary Arrears?

How to View 26AS and Download Form 26AS Online

What is TDS Refund Process?

How to e-Verify your Income Tax Return

How to File Income Tax Return - Everything You Need To Know

What are the Different Types of Taxes in India?

Types of Income Tax Return (ITR) Forms

Tax Saving Options other than Section 80C

What is Salary Protection Insurance and Why You Need It

ITR-6: Guide to filing ITR-6 Form online

How to Check Income Tax Returns Status Onine?

How to Pay Advance Tax Online in India

Tax Structure in India

Tax Exemption and Scope of Coverage

Income Tax Filing Using Multiple Form 16

What is the TDS Rate on Salary?

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Section 80C Deductions as per Income Tax Act, 1961

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

Guaranteed Return Plans-Why is it a must for you?

Interest Imposed Under Section 234A, 234B and 234C

What is ITR 5 Form and How to File ITR 5?

What are Direct Taxes? How to Avoid being Overtaxed?

Home Investment Plan to Buy Dream Home

Types of Riders in Insurance Policy

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

How to Download Form 16?

What is Form 16B?

Tax Season Is Coming- Know How to Save Tax

A Comprehensive Guide to Understand the ITR 7 Form

What is Section 80C - Explained in Detail

Form 16, Form 16A, and Form 16B?

Section 80G of the Income Tax Act

5 Popular Tax-Saving Schemes in India

How to File Income Tax Return without Form 16

Insurance and Endowment: Everything You Need to Know!

How to e file ITR on Income Tax Government Portal

All about TDS on Salary under Section 192 – Kotak Life

How to View 26AS and Download Form 26AS Online?

Income Tax Exemption for Disabled

What is Form 16A?

आयकर स्लैब 2021-2022

7 Important Things to Remember While Investing in a Savings Investment Plan