Limit of Deduction u/s 80CCC is increased to 1.5 Lakhs

Under the provisions of sub-section (1) of the section 80CCC of the Income-tax
Act, before its amendment by the Act, an assessee, being an individual was allowed a
deduction upto one lakh rupees in the computation of his total income, of an amount
paid or deposited by him to effect or keep in force a contract for any annuity plan of Life
Insurance Corporation of India or any other insurer for receiving pension from a fund
set up under a pension scheme.

21.2 In order to promote social security, sub-section (1) of section 80CCC has been
amended to raise the limit of deduction under section 80CCC from one lakh rupees to
one hundred and fifty thousand rupees, within the overall limit provided in section
80CCE.

21.3 Applicability:-This amendment will take effect from 1st April, 2016 and will,
accordingly, apply in relation to the assessment year 2016-17 and subsequent
assessment years.
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