TMI BlogDeduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... to in clause (xii), on the life of persons specified in sub-section (4): Provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; (iii) by way of deduction from the salary payable by or on behalf of the Government to any individual being a sum deducted in accordance with the conditions of his service, for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum so deducted does not exceed one-fifth of the salary; (iv) as a contribution by an individual to any provident fund to which the Provident Funds Act, 1925 (19 of 1925) applies; (v) as a contribution to any provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette, where such contribution is to an account standing in the name of any person specified in sub-section (4); (vi) as a contribution by an employee to a recognised provident fund; (vii) as a contribution by an employee to an approved superannuation fund; (viii) 13 [as subscription, in the name of any person specified in sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction or purchase of houses in India for residential purposes; or (b) any authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both, as the Central Government may, by notification in the Official Gazette, specify in this behalf; (xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,- (a) to any university, college, school or other educational institution situated within India; (b) for the purpose of full-time education of any of the persons specified in sub-section (4); (xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head Income from house property (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of- (a) any instalment or part payment of the amount due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 24; (xix) as subscription to equity shares or debentures forming part of any eligible issue of capital approved by the Board on an application made by a public company or as subscrip tion to any eligible issue of capital by any public financial institution in the prescribed form. Explanation .-For the purposes of this clause,- (i) eligible issue of capital means an issue made by a public company formed and registered in India or a public finan cial institution and the entire proceeds of the issue are uti lised wholly and exclusively for the purposes of any business referred to in sub-section (4) of section 80-IA; (ii) public company shall have the meaning assigned to it in section 3 of the Companies Act, 1956 (1 of 1956); (iii) public financial institution shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956); (xx) as subscription to any units of any mutual fund re ferred to in clause (23D) of section 10 and approved by the Board on an application made by such mutual fund in the prescribed form: Provided that this clause shall apply if the amount of subscrip tion to such units is subscribed only in the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual capital sum assured. Explanation .-In calculating any such actual capital sum assured, no account shall be taken- (i) of the value of any premiums agreed to be returned, or (ii) of any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. 10 [ (3A) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an insurance policy, other than a contract for a deferred annuity, issued on or after the 1st day of April, 2012 as is not in excess of ten per cent of the actual capital sum assured. 11 [Provided that where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is- (a) a person with disability or a person with severe disability as referred to in section 80U, or (b) suffering from disease or ailment as specified in the rules made under section 80DDB, the provisions of this sub-section shall have effect as if for the words ten per cent , the words fifteen per cent had been substituted ] Explanation .-For the purposes of this sub-section, actual capital sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , any sum specified in that clause, then,- (a) no deduction shall be allowed to the assessee under sub-section (1) with reference to any of the sums, referred to in clauses (i), (x), (xi) and (xviii) of sub-section (2), paid in such previous year; and (b) the aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assess ment year relevant to such previous year. (6) If any equity shares or debentures, with reference to the cost of which a deduction is allowed under sub-section (1), are sold or otherwise transferred by the assessee to any person at any time within a period of three years from the date of their acquisition, the aggregate amount of the deductions of income so allowed in respect of such equity shares or debentures in the previous year or years preceding the previous year in which such sale or transfer has taken place shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year. Explanation . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after such adoption) specified in the policy in this behalf; (iv) Life Insurance Corporation means the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956); (v) public company shall have the same meaning as in section 3 of the Companies Act, 1956 (1 of 1956); (vi) security means a Government security as defined in clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944); (vii) specified company means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); (viii) transfer shall be deemed to include also the transactions referred to in clause (f) of section 269UA. ] ------------------------------------- Notes :- 1. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. Earlier section 80C was omitted by the Finance Act, 1990, w.e.f. 1-4-1991. 2. Substituted for notified under by the Finance Act, 2006, w.e.f. 1-4-2007. 3. Substituted for notified under by the Finance Act, 2006, w.e.f. 1-4-2007. 4. Substituted for notified under by the Finance Act, 2006, w.e.f. 1-4- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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