What are the tax benefits available under pension plans?
Under Section 80CCC, where an assesse has paid/deposited any amount towards any annuity plan for receiving pension fund, he/she will be allowed deduction up to Rs 10,000 from the total income. Where the amount paid/deposited has been taken into consideration for the purpose of claiming deduction, a rebate with reference to such amount shall not be allowed under Section 88. If a person discontinues paying premium on his life insurance or a pension policy, does he get tax rebate? If a person stops paying premium amounts on his/her life insurance policy, it amounts to discontinuation of the policy; hence he is not entitled to claim any tax benefits. If a tax payer discontinues the life insurance policy before premiums have been paid for a period of 2 years from the commencement of the policy, no tax deduction is allowed in respect of any premium paid on that policy in the year in which the policy is terminated. Further the amount of tax deduction allowed for the premium paid in the preced
The tax benefits for premium paid per annum in case of pension plans are eligible for a maximum benefit of Rs 100,000 under Section 80CCC. The said Section 80CCC limit also falls under the overall Section 80C limit of Rs 100,000. In other words, the deduction aggregate, under Section 80C, 80CCC and 80CCD cannot exceed Rs 100,000.
