Section 123 — Deduction in respect of life insurance premia, etc.
Old Act equivalent: Section 80C, 80CCC of IT Act 1961 Sub-part: Deductions from total income
Statutory Text
- An individual or a Hindu undivided family, shall be allowed a deduction of the whole of the amount paid or deposited in the tax year, being the aggre gate of the sums enumerated in Schedule XV, as does not exceed ` 150000, while computing the total income for that year, subject to the conditions specified in that Schedule. Deduction in respect of employer and assessee contribution to pension scheme of Central Government.
Provisos
None.
Explanations
None.
Tables
Present in statutory text above — see formatted section.
Key Structure
- Applies to: Individual and Hindu undivided family
- Conditions: Payment/deposit in specified instruments: life insurance, PPF, NSC, ELSS, tuition fees, housing loan principal, Sukanya Samriddhi, 5-year term deposit, etc.
- Time limits: Payment/deposit must be made during the tax year
- Monetary limits: Maximum deduction Rs.1,50,000 (combined with sections 124 and 125)
- Exceptions: Life insurance premium limited to 10% of sum assured (20% for policies before 01-04-2012); surrender of policy within 2 years forfeits deduction
Cross-References
None identified.
Amendment Notes
None noted from the extracted pages.