Eligible assesse – Individual
Under this section deduction is allowed if assesse has paid or deposited an amount in any annuity plan of the LIC of India or any other insurer for receiving pension from a fund referred to in section10(23AAB).
Amount of deduction is lower of the amount so paid /deposited or Rs. 1,50,000 (Rs. 1,00,000 upto A.y 2015-16). The amount of interest or bonus accrued or credited to account is not deductible.
If the assesse or his nominee receives any amount (including bonus, interest) on surrendering of policy or pension received will be taxable in the hands of recipient in the year of receipt. Such amount is taxable only if deduction was allowed in respect of such amount under this section.
Section 80 CCE – The maximum amount of aggregate deduction under section 80C, 80CCC and 80CCD(1) (i.e employee’s contribution or an individual assessee’s contribution to notified pension scheme of Central Government (NPS) ) cannot exceed Rs. 1,00,000.