The aggregate amount of deductions u/s 80C, 80CCC and 80CCD (1) is restricted to Rs. 1,50,00 vide Sec. 80CCE.
However, deduction u/s 80CCD (1B) ( in respect of deposit by the assessee in the pension scheme upto maximum of Rs.50,000) and u/s 80CCD (2) (in respect of contribution by Central Govt/employer to the pension scheme) shall be available in addition to this limit.
The most common questions asked by every readers of AlertTax that how much deduction is allowed in aggregate under section 80C, 80CCC and 80CCD? It is common because every year the limit has been changed. So there may be confusion in the mind of the people.
These deductions are not allowable against any income by way of winning from lotteries, crossword puzzles, card games or other games.
As you all know that a number of deductions under Chapter VI-A i.e Section 80C to 80U are allowed from the gross total income. So we will not talk here about the each and every deduction. Each deduction is allowed as per the parameters or rules related to that particular section.
We will talk here only about the total deduction or limit of deduction allowed under section 80C individual or combined (80C, 80CCC and 80CCD).
The person who want to know more about deduction under section 80C, visit the following link.
Deduction under section 80CCC: The deduction is allowed only to individual assesee for the amount paid or deposited during the previous year out of his taxable income, to the annuity plan of Life Insurance Corportation of India (e.g. Jevan Suraksha) or annuity plan of other insurance companies for receiving pension from the fund referred in the section 10 (23AAB). The maximum deduction is allowed up to Rs. 1,00,000 (A.Y. 2014-15) Rs. 1,50,000 (A.Y. 2015-16).
Deduction under section 80CCD is applicable in respect of contribution to Pension Scheme of Central Government. The amount of deduction in respect of assessee’s contribution shall not exceed Rs. 1,00,000.
These deductions are allowed to certain specified tax-payers, in relation to certain specified incomes or expenditure or investment of donation. These deduction have to be made from the gross total income, in order to arrive at net income/taxable income.
So the aggregate amount of deduction u/s 80C, 80CCC and 80CCD is subject to an over limit of Rs. 1,50,000 [Rs. 1,00,000 for A.Y. 2014-15]
However, deduction u/s 80CCD in respect of contribution by Central Govt./ employer to the pension scheme shall be available in addition to this limit.