The Hindu Business Line : Jeevan Akshay-III eligible for Sec 80C benefits

The Centre has now said that investments made in Jeevan Akshay-III Plan, which is an annuity plan of Life Insurance Corporation of India, would be entitled for benefits under Section 80C of the income-tax law.

Under Section 80C, an individual or a Hindu undivided family (HUF) is allowed a deduction from income of an amount not exceeding Rs 1 lakh on investments made in certain specified schemes.

This provision, which was introduced in Budget 2005-06, requires the Centre to specify the annuity plans of LIC or any other insurer that would be eligible for benefits under Section 80C.

As a first step in the direction of an exempt-exempt-tax (EET) system of taxation, the Government had in Budget 2005-06 replaced the rebate method (Section 88) with an income-based deduction method (Section 80C).

The investments that qualify for a deduction under Section 80C, within the overall ceiling of Rs 1 lakh, includes life insurance premia, contributions to provident funds or schemes for deferred annuities.

More Stories on : Life Insurance | Income Tax

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
On committees and convertibility

No-frills bank accounts: Financial inclusion is good economics

Rupee weakens further

ECS facility at Haldia

LIC Housing Q4 net doubles

Jeevan Akshay-III eligible for Sec 80C benefits

Bajaj Allianz plans to raise equity capital

Oriental Insurance rated B++

Stanchart sees rupee at 44/dollar by year-end

UTI Bank to focus more on non-metros

Dena Bank bets on NPA recovery, credit watch

Bond prices fall 10 paise

T-bills auction fully subscribed

Call rates remain unchanged

Long-term deposit scheme from BoI