Contribution to Pension Fund of Insurance Companies [Section 80CCC]
• Any individual (resident or non-resident) who has made payment or deposit under an annuity plan of LIC or any other insurer for receiving pension can claim deduction.
• Deduction allowed is the lower of actual amount paid/deposited or Rs. 1,50,000.
• No deduction for interest or bonus accrued or credited to the account.
• If assessee surrenders annuity (whole or part) before maturity after claiming deduction, surrender value and interest or bonus accrued are taxable in the year of receipt.
• Pension received by assessee or nominee, where deduction was claimed, is taxable in hands of receiver in year of receipt.