Section 88 — Rebate on life insurance premia, contribution to provident fund, etc.

Rebate on life insurance premia, contribution to provident fund, etc.—10[(1) Subject to the provisions of this section, an assessee, being an individual, or a Hindu undivided family, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to— (i) in the case of an individual or a Hindu undivided family, whose gross total income before giving effect to deductions under Chapter VI-A, is one lakh fifty thousand rupees or less, twenty per cent of the aggregate of the sums referred to in sub-section (2): Provided that an individual shall be entitled to a deduction of an amount equal to thirty per cent of the aggregate of the sums referred to in sub-section (2) if his income under the head “Salaries”— (a) does not exceed one lakh rupees during the previous year before allowing the deduction under section 16; and (b) is not less than ninety per cent of his gross total income, as defined in sub-section (5) of section 80B; (ii) in the case of an individual or a Hindu undivided family, whose gross total income before giving effect to deductions under Chapter VI-A, is more than one lakh fifty thousand rupees but does not exceed five lakh rupees, fifteen per cent of the aggregate of the sums referred to in sub-section (2); (iii) in the case of an individual or a Hindu undivided family, whose gross total income before giving effect to deductions under Chapter VI-A, exceeds five lakh rupees, nil.] (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee 11***— (i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4); (ii) to effect or to keep in force a contract for a deferred annuity, 12[not being an annuity plan referred to in clause (xiiia)], on the life of persons specified in sub-section (4):

‹ Prev All sections Next ›