incometax_subramani

8/4/2019 INCOMETAX_SUBRAMANI

1/10

(10D) any sum received under a life insurance policy,including the sum allocated by way of bonus on suchpolicy other than any sum received under sub-section (3)of section 80DDA or under a Keyman insurance policy.

Explanation. For the purposes of this clause,"Keyman insurance policy" means a life insurancepolicy taken by a person on the life of anotherperson who is or was the employee of the firstmentioned person or is or was connected in anymanner whatsoever with the business of the firstmentioned person;

The Following clause 10(D) of section 10 by theFinance Act, 2003, w.e.f. 1-4-2004:

(10D) any sum received under a life insurance policy,including the sum allocated by way of bonus on suchpolicy, other than-

(a) any sum received under sub-section (3) ofsection 80DD or sub-section (3) of section 80DDA;or

(b) any sim received under a Keyman insurancepolicy;or

(c) any sum received under an insurance policyissued on or after the 1st day of April, 2003 inrespect of which the premium payable for any ofthe years during the term of the policy exceedstwenty per cent of the actual capital sum assured:

Provided that the provisions of this sub-clauseshall not apply to any sum received on the deathof a person:

Provided further that for the purpose of calculatingthe actual capital sum assured under this sub-clause, effect shall be given to the Explanation tosub-section (2A) of section 88.

Explanation.-For the purposes of this clause, "Keymaninsurance policy" means a life insurance policy taken by aperson on the life of another person who is or was theemployee of the first-mentioned person or is or wasconnected in any manner whatsoever with the businessof the first-mentioned person;


2/10

Section80DD

Deduction under this section is available to an individual who:

Incurs any expenditure for the medical treatment, training and rehabilitation of a

disabled dependant; or

Deposits any amount in schemes like Life Insurance Corporation for the

maintenance of a disabled dependant. An annuity or a lump sum amount is paid

to the dependant or to a nominee for the benefit of the dependant in the event of

the death of the individual depositing the money, from the said scheme,

A deduction of Rs 50,000 is available. Where the depandant is with a severe disability, adeduction ofRs 1,00,000 is allowed. (As per AY 2009-10)

If the death of the dependant occurs before that of the assessee, the amount in thescheme is returned to the individual and is taxable in his hands in the year that it isreceived.

An individual should furnish a copy of the issued certificate by the medical boardconstituted either by the Central government or a state government in the prescribedform, along with the return of income of the year for which the deduction is claimed.

The term 'dependent' here refers to the spouse, children, parents and siblings of theassessee who are dependant on him for maintenance and who themselves haven'tclaimed a deduction for the disability in computing their total incomes.

This deduction is also available to Hindu Undivided Families (HUF).


3/10

88. Rebate on life insurance premia, contribution toprovident fund, etc.

(1) Subject to the provisions of this section, an assessee,being-

(a) an individual, or

(b) a Hindu undivided family,

shall be entitled to a deduction, from the amount ofincome-tax (as computed before allowing the deductionsunder this Chapter) on his total income with which he ischargeable for any assessment year, of an amount equalto twenty per cent. of the aggregate of the sums referredto in sub-section (2):

Provided that in the case of an individual, whoseincome, derived from the exercise of his professionas an author, playwright, artist, musician, actor orsportsman (including an athlete), is twenty-fiveper cent. or more of his total income, theprovisions of this sub-section shall have effect as iffor the words "twenty per cent.", the words"twenty-five per cent." had been substituted.

Provided further that an individual shall be entitledto a deduction of an amount equal to thirty per

cent of the aggregate of the sums referred to insub-section (2) if his income chargeable under thehead Salaries-

(a) does not exceed one lakh rupees duringthe previous year before allowing deductionunder section 16; and

(b) is not less than ninety per cent of hisgross total income as defined in sub-section(5) ofsection 80B.

The following sub-section (1) shall be substitutedfor the existing sub-section (1) by the Finance Act,2002, w.e.f. 1-4-2003:

(1) Subject to the provisions of this section, an assessee,being an individual, or a Hindu undivided family, shall beentitled to a deduction, from the amount of income-tax(as computed before allowing the deductions under thisChapter) on his total income with which he is chargeablefor any assessment year, of an amount equal to-

(i) in the case of an individual or a Hinduundivided family, whose gross total income before
http://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/16.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80b.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/16.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80b.asp


4/10

giving effect to deductions under Chapter VI-A, isone lakh fifty thousand rupees or less, twenty percent of the aggregate of the sums referred to insub-section (2):

Provided that an individual shall be entitledto a deduction of an amount equal to thirty per cent of the aggregate of the sumsreferred to in sub-section (2) if his incomeunder the head Salaries-

(a) does not exceed one lakh rupeesduring the previous year beforeallowing the deduction under section16; and

(b) is not less than ninety per cent of

his gross total income, as defined insub-section (5) ofsection 80B;

(ii) in the case of an individual or a Hinduundivided family, whose gross total income beforegiving effect to deductions under Chapter VI-A, ismore than one lakh fifty thousand rupees but doesnot exceed five lakh rupees, fifteen per cent of theaggregate of the sums referred to in sub-section(2);

(iii) in the case of an individual or a Hinduundivided family, whose gross total income beforegiving effect to deductions under Chapter VI-A,exceeds five lakh rupees, nil.

(2) The sums referred to in sub-section (1) shall be anysums paid or deposited in the previous year by theassessee out of his income chargeable to tax -

(i) to effect or to keep in force an insurance on thelife of persons specified in sub-section (4);

(ii) to effect or to keep in force a contract for adeferred annuity, not being an annuity planreferred to in clause (xiiia), on the life of personsspecified in sub-section (4):

Provided that such contract does notcontain a provision for the exercise by theinsured of an option to receive a cashpayment in lieu of the payment of theannuity;

(iii) by way of deduction from the salary payableby or on behalf of the Government to any
http://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/16.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/16.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80b.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/16.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/16.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80b.asp


5/10

individual being a sum deducted in accordancewith the conditions of his service, for the purposeof securing to him a deferred annuity or makingprovision for his wife or children, in so far as thesum so deducted does not exceed one-fifth of thesalary;

(iv) as a contribution by an individual to anyprovident fund to which the Provident Funds Act,1925 (19 of 1925), applies;

(v) as a contribution to any provident fund set upby the Central Government and notified by it inthis behalf in the Official Gazette, where suchcontribution is to an account standing in the nameof any person specified in sub-section (4);

(vi) as a contribution by an employee to arecognised provident fund;

(vii) as a contribution by an employee to anapproved superannuation fund;

(viii) in a ten-year account or a fifteen-yearaccount under the Post Office Savings Bank(Cumulative Time Deposits) Rules, 1959, asamended from time to time, where such sums aredeposited in an account standing in the name of

the persons specified in sub-section (4);

(ix) as subscription to any such security of theCentral Government or any such deposit schemeas that Government may, by notification in theOfficial Gazette, specify in this behalf;

(x) as subscription to the National SavingsCertificates (VI Issue) and National SavingsCertificates (VII Issue) issued under theGovernment Savings Certificates Act, 1959 (46 of1959);

(xi) as subscription to any such savings certificateas defined in clause (c) of section 2 of theGovernment Savings Certificates Act, 1959 (46 of1959), as the Central Government may, bynotification in the Official Gazette, specify in thisbehalf;

(xii) as a contribution, in the name of any person

specified in sub-section (4), for participation in theUnit-linked Insurance Plan, 1971 (hereafter in this

section referred to as the Unit-linked InsurancePlan) deemed to have been made under sub-


6/10

clause (a) of clause (8) of section 19 of the UnitTrust of India Act, 1963 (52 of 1963);

(xiii) as a contribution in the name of any personspecified in sub-section (4) for participation in any

such unit-linked insurance plan of the LIC MutualFund notified under clause (23D) ofsection 10, asthe Central Government may, by notification in theOfficial Gazette, specify in this behalf;

(xiiia) to effect or to keep in force a contract forsuch annuity plan of the Life InsuranceCorporation or any other insurer as the CentralGovernment may, by notification in the OfficialGazette, specify;

(xiiib) as subscription, not exceeding ten thousand

rupees, to any units of any Mutual Fund notifiedunder clause (23D) ofsection 10 or the Unit Trustof India established under the Unit Trust of IndiaAct, 1963 (52 of 1963), under any plan formulatedin accordance with such scheme as the CentralGovernment may, by notification in the OfficialGazette, specify in this behalf;

(xiiic) as a contribution by an individual to anypension fund set up by any Mutual Fund notifiedunder clause (23D) of section 10 or by the Unit

Trust of India established under the Unit Trust ofIndia Act, 1963 (52 of 1963), as the CentralGovernment may, by notification in the OfficialGazette, specify in this behalf;

(xiv) as subscription to any such deposit schemeof , or as a contribution to any such pension fundset up by, the National Housing Bank establishedunder section 3 of the National Housing Bank Act,1987 (53 of 1987) (hereafter in this sectionreferred to as the National Housing Bank), as theCentral Government may, by notification in the

Official Gazette, specify in this behalf;

(xiva) as subscription to any such deposit schemeof-

(a) a public sector company which isengaged in providing long-term finance forconstruction or purchase of houses in Indiafor residential purposes; or

(b) any authority constituted in India by or

under any law enacted either for thepurpose of dealing with and satisfying the
http://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/10.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/10.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/10.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/10.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/10.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/10.asp


7/10

need for housing accommodation or for thepurpose of planning, development orimprovement of cities, towns and villages,or for both,

not being a scheme the interest on depositwhereunder qualifies for the purposes ofcomputing the deduction under section 80L, as theCentral Government may, by notification in theOfficial Gazette, specify in this behalf;

(xv) for the purposes of purchase or constructionof a residential house property the income fromwhich is chargeable to tax under the head "Incomefrom house property" (or which would, if it had notbeen used for the assessee's own residence, havebeen chargeable to tax under that head), where

such payments are made towards or by way of -

(a) any instalment or part payment of theamount due under any self-financing orother scheme of any developmentauthority, housing board or other authorityengaged in the construction and sale ofhouse property on ownership basis; or

(b) any instalment or part payment of theamount due to any company or co-

operative society of which the assessee is ashareholder or member towards the cost ofthe house property allotted to him; or

(c) repayment of the amount borrowed bythe assessee from -

(1) the Central Government or anyState Government, or

(2) any bank, including a co-operative bank, or

(3) the Life Insurance Corporation,or

(4) the National Housing Bank, or

(5) any public company formed andregistered in India with the mainobject of carrying on the business ofproviding long-term finance forconstruction or purchase of houses in

India for residential purposes whichis eligible for deduction under clause
http://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80l.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80l.asp


8/10

(viii) of sub-section (1) of section 36,or

(6) any company in which the publicare substantially interested or any

co-operative society, where suchcompany or co-operative society isengaged in the business of financingthe construction of houses, or

(7) the assessee's employer wheresuch employer is a public companyor a public sector company or aUniversity established by law or acollege affiliated to such university ora local authority or a co-operativesociety;

(d) stamp duty, registration fee and otherexpenses for the purpose of transfer of suchhouse property to the assessee,

but shall not include any payment towards or byway of -

(A) the admission fee, cost of share andinitial deposit which a shareholder of acompany or a member of a co-operative

society has to pay for becoming suchshareholder or member; or

(C) the cost of any addition or alteration to,or renovation or repair of, the houseproperty which is carried out after the issueof the completion certificate in respect ofthe house property by the authoritycompetent to issue such certificate or afterthe house property or any part thereof haseither been occupied by the assessee or anyother person on his behalf or been let out;

or

(D) any expenditure in respect of whichdeduction is allowable under the provisionsofsection 24:

(xvi) as subscription to equity shares ordebentures forming part of any eligible issue ofcapital approved by the Board on an applicationmade by a public company or as subscription toany eligible issue of capital by any public financial

institution in the prescribed form:
http://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/36.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/24.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/36.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/24.asp


9/10

Provided that where a deduction is claimedand allowed under this clause withreference to the cost of any equity sharesor debentures, the cost of such shares ordebentures shall not be taken into accountfor the purposes ofsection 54EA and section54EB.

Explanation.-For the purposes of thisclause,-

(i) "eligible issue of capital" meansan issue made by a public companyformed and registered in India or apublic financial institution and theentire proceeds of the issue isutilised and the issue is wholly and

exclusively for the purposes ofdeveloping, maintaining andoperating an infrastructure facility orfor generating, or for generating anddistributing, power or for providingtelecommunication services whetherbasic or cellular;

(ii) "infrastructure facility" shall havethe meaning assigned to it in theExplanation to sub-section (4) ofsection 80-IA;

(iii) "public company" shall have themeaning assigned to it in section 3 ofthe Companies Act, 1956 (1 of1956);

(iv) "public financial institution" shallhave the meaning assigned to it insection 4A of the Companies Act,1956 (1 of 1956);

(xvii) as subscription to any units of any mutualfund referred to in clause (23D) of section 10 andapproved by the Board on an application made bysuch mutual fund in the prescribed form:

Provided that where a deduction is claimedand allowed under this clause withreference to the cost of units, the cost ofsuch units shall not be taken into accountfor the purposes ofsection 54EA and section54EB:
http://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54EA.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54EB.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54EB.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80-ia.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/10.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54ea.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54eb.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54eb.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54EA.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54EB.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54EB.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80-ia.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/10.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54ea.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54eb.asphttp://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54eb.asp


10/10

Provided further that this clause shall applyif the amount of subscription to such unitsis subscribed only in the eligible issue ofcapital of any company.

Explanation.- For the purposes of thisclause "eligible issue of capital" means anissue referred to in clause(i) of Explanationto clause (xvi) in sub-section 2 of section88.

incometax_subramani

Documents