Section 80CCD:
Deduction in respect of contribution to pension scheme of Central Government.
1(1)
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Where an assessee, being an individual employed by the Central Government on or after the 1st day of
January, 2004 or, being an individual employed by any other employer, 3
or any other assessee, being an
individual has in the previous year paid or deposited any amount in his account under a pension scheme
notified or as may be notified by the Central Government, he shall, in accordance with, and subject to, the
provisions of this section, be allowed a deduction in the computation of his total income, of the whole of
the amount so paid or deposited 4
as does not exceed,—
(a) in the case of an employee, ten per cent of his salary in the previous year; and
(b) in any other case, 5
twenty per cent. of his gross total income in the previous year.
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* * * * *
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(1B) An assessee referred to in sub-section (1), shall be allowed a deduction in computation of his
total income, whether or not any deductions is allowed under sub-section (1), of the whole of the amount
paid or deposited in the previous year in his account under a pension scheme notified or as may be
notified by the Central Government, which shall not exceed fifty thousand rupees:
Provided that no deduction under this sub-section shall be allowed in respect of the amount on which
a deduction has been claimed and allowed under sub-section (1).
(2) Where, in the case of an assessee referred to in sub-section (1), the 8
Central Government or any
other employer makes any contribution to his account referred to in that sub-section, the assessee shall be
allowed a deduction in the computation of his total income, of the whole of the amount contributed by the
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Central Government or any other employer as does not exceed ten per cent of his salary in the previous
year.
(3) Where any amount standing to the credit of the assessee in his account referred to in
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sub-section (1) or sub-section (1B), in respect of which a deduction has been allowed 10
under those
sub-sections or sub-section (2), together with the amount accrued thereon, if any, is received by the
assessee or his nominee, in whole or in part, in any previous year,—
(a) on account of closure or his opting out of the pension scheme referred to in
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sub-section (1) or sub-section (1B); or
(b) as pension received from the annuity plan purchased or taken on such closure or opting out,
the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the
assessee or his nominee, as the case may be, in the previous year in which such amount is received, and
shall accordingly be charged to tax as income of that previous year.
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Provided that the amount received by the nominee, on the death of the assessee, under the
circumstances referred to in clause (a), shall not be deemed to be the income of the nominee.
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(4) Where any amount paid or deposited by the assessee has been allowed as a deduction under
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sub-section (1) or sub-section (1B),—
(a) no rebate with reference to such amount shall be allowed under section 88 for any assessment
year ending before the 1st day of April, 2006;
(b) no deduction with reference to such amount shall be allowed under section 80C for any
assessment year beginning on or after the 1st day of April, 2006.
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(5) For the purposes of this section, the assessee shall be deemed not to have received any amount in
the previous year if such amount is used for purchasing an annuity plan in the same previous year.
Explanation.—For the purposes of this section, “salary” includes dearness allowance, if the terms of
employment so provide, but excludes all other allowances and perquisites.
Notes:
1. Ins. by Act 23 of 2004, s. 15 (w.e.f. 1-4-2004).
2. Subs. by Act 25 of 2014, s. 28, for “Where an assessee, being an individual employed by the Central Government or any
other employer on or after the 1st day of January, 2004” (w.e.f. 1-4-2015).
3. Ins. by Act 33 of 2009, s. 30 (w.e.f. 1-4-2009).
4. Subs. by s. 30, ibid., for “as does not exceed ten per cent. of his salary in the previous year” (w.e.f. 1-4-2009).
5. Subs. by Act 7 of 2017, s. 33 for “ten per cent.” (w.e.f. 1-4-2018).
6. Sub-section (1A) omitted by Act 20 of 2015, s. 18 (w.e.f. 1-4-2016).
7. Ins. by s. 18, ibid. (w.e.f. 1-4-2016).
8. Subs. by Act 22 of 2007, s. 25, for “Central Government” (w.e.f. 1-4-2004).
9. Subs. by Act 20 of 2015, s. 18, for “sub-section (1)” (w.e.f. 1-4-2016).
10. Subs. by s. 18, ibid., for “ under that sub-section” (w.e.f. 1-4-2016).
11. Ins. by Act 28 of 2016, s. 37 (w.e.f. 1-4-2017).
12. Subs. by Act 18 of 2005, s. 23, for sub-section (4) (w.e.f. 1-4-2006).
13. Ins. by Act 33 of 2009, s. 30 (w.e.f. 1-4-2009).