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Amendment in section 80C of income tax act

Section 80C of income tax is about the deductions in income tax on the total contribution to approved savings paid or deposited. The total saving should not be exceeds Rs. 100000. There are some rules amend in the section 80C in the recent finance act issued by the finance department. The amendment rules of section 80C of income tax are as follows.

In section 80C of the Income-tax Act, with effect from the 1st day of April, 2013,—
(i) in sub-section (3), for the words "insurance policy other than a contract for a deferred annuity", the words, figures and letters "insurance policy, other than a contract for a deferred annuity, issued on or before the 31st day of March, 2012," shall be substituted;

(ii) after sub-section (3), the following shall be inserted, namely:—
'(3A) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an insurance policy, other than a contract for a deferred annuity, issued on or after the 1st day of April, 2012 as is not in excess of ten per cent of the actual capital sum assured.

Explanation.—For the purposes of this sub-section, "actual capital sum assured" in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking intoaccount—
(i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the sum actually assured,which is to be or may be received under the policy by any person.'.

Tags-section 80c of income tax,section 80c of income tax act,income tax section 80c,section 80c amendments rules,new rules of section 80c

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