Section 80CCC of the Income Tax Act 1961 provides tax deductions for contribution to certain pension funds. The section provides tax deduction up to a maximum of Rs.1.5 lakh per year on expenses incurred in buying a new policy or continuing an existing policy that pays pension or a periodical annuity.
It works in conjunction with section 80C and 80CCD(1) so that the maximum total deduction available under all three sections (80C, 80CCC & 80CCD(1)) is Rs. 1.5 lakh.
Any individual is eligible.
HUFs (Hindu Unified Family) are not eligible.
Under section 80C amount can be paid from income not chargeable to tax but u/s 80CCC amount must be paid out of income chargeable to tax.
Yes, both residents and non-residents can claim deductions u/s 80CCC. However, an HUF is not eligible for this deduction.
No. Section 80CCE says that there is an aggregate limit of Rs. 1.5 lakh on the deductions u/s 80C, 80CCC and 80CCD(1).