Section 80CCC — Deduction for LIC & Pension Fund Premium
Updated: 3 June 2026 | Income-tax Act 2025 | Section 80CCE
Section 80CCC: deduction up to ₹1,50,000 for contributions to LIC/insurer annuity/pension plans. Part of the combined ₹1.5L ceiling of Section 80CCE (shared with 80C). Old regime only — not available in new regime. NPS 80CCD(1B) gives extra ₹50K beyond this limit.
₹1.5L
80CCC limit — within Section 80CCE combined ceiling of ₹1.5L (shared with 80C investments).
Use NPS 80CCD(1B) for extra ₹50K deduction over this limit. Old regime only. Annuity received at maturity: taxable at slab rates. Surrender before maturity: deduction previously claimed is taxed back.
Use NPS 80CCD(1B) for extra ₹50K deduction over this limit. Old regime only. Annuity received at maturity: taxable at slab rates. Surrender before maturity: deduction previously claimed is taxed back.
Section 80C + 80CCC + 80CCD Combined Limits
| Section | Type | Limit | New Regime |
|---|---|---|---|
| 80C | PF, ELSS, PPF, LIC premium etc. | Combined ₹1.5L (80CCE) | No |
| 80CCC | LIC/insurer annuity/pension fund | No | |
| 80CCD(1) | Employee NPS contribution | No | |
| 80CCD(1B) | Additional NPS (own contribution) | ₹50,000 extra | No |
| 80CCD(2) | Employer NPS contribution | 14%/10% of salary | Yes ✓ |
Frequently Asked Questions
What is Section 80CCC deduction?
Section 80CCC Income-tax Act 2025: Deduction for contribution paid (premium) to any pension fund offered by LIC of India or any other insurer (registered with IRDAI). Limit: Maximum ₹1,50,000 per year. IMPORTANT: This ₹1,50,000 is NOT in addition to Section 80C limit — it is WITHIN the combined ₹1,50,000 ceiling of Section 80CCE (which covers 80C + 80CCC + 80CCD(1) together). Who can claim: Individuals only (not HUF, firms, companies). Both Indian residents and NRIs. Available in old tax regime only — not applicable in new regime. Qualifying contributions: Annuity plan of LIC (Jeevan Akshay, Jeevan Dhara, etc.), annuity plans of private insurers. NOT eligible: pure life insurance premium (that goes under 80C), ULIP premium (80C), mutual fund pension plans (80C).
What is the overall limit for 80C, 80CCC and 80CCD(1)?
Section 80CCE combines 80C + 80CCC + 80CCD(1) — maximum deduction: ₹1,50,000 for all three combined. Example: If you invest ₹1,50,000 in ELSS (80C), you get zero benefit from 80CCC — limit already exhausted. If you invest ₹1L in ELSS + ₹50K in pension fund: total ₹1.5L within limit. Section 80CCD(1B): NPS additional ₹50,000 — this is OVER and ABOVE the ₹1.5L of 80CCE. So maximum total: ₹1.5L (80CCE) + ₹50K (80CCD(1B)) = ₹2L total deduction. Summary of available deductions for old regime salaried: 80C investments: ₹1.5L cap. 80CCC pension premium: within ₹1.5L cap. 80CCD(2) employer NPS: separate deduction (no limit from 80CCE). 80CCD(1B): extra ₹50K for NPS. Maximize: use NPS Tier 1 for ₹50K extra beyond ₹1.5L rather than splitting with 80CCC.
What pension fund contributions qualify under 80CCC?
Eligible products under Section 80CCC: LIC Annuity Plans: Jeevan Akshay VII (immediate annuity), New Jeevan Nidhi, Jeevan Dhara, Pradhan Mantri Vaya Vandana Yojana (PMVVY — government-backed). Private insurer pension plans: HDFC Life Pension Super Plus, ICICI Pru Easy Retirement, SBI Life Saral Pension, Bajaj Allianz Pension Guarantee, etc. These are annuity/pension plans — you pay premium, get pension at retirement. NOT eligible: Regular LIC endowment/term plans (those go under 80C). ULIPs (under 80C). ELSS/mutual funds (under 80C). PPF, NSC, NPS (under different sections). Surrender/maturity: if you surrender the pension plan early and get lump sum, the deduction claimed under 80CCC is ADDED BACK to income (taxable) in year of surrender. Annuity received: pension received after maturity is taxable as "Income from Other Sources" at slab rates.
Is 80CCC available in new tax regime?
80CCC in new vs old regime: OLD REGIME: 80CCC deduction available (up to ₹1.5L combined with 80C). NEW REGIME: 80CCC deduction NOT available. All Section 80 deductions (except 80CCD(2) employer NPS contribution) are surrendered in new regime. The trade-off: new regime has lower tax rates but no 80CCC. Comparison: Old regime: pay 30% on ₹15L income. With 80C ₹1.5L: taxable income = ₹13.5L. Tax ≈ ₹2.6L. New regime: 30% on 24L+ income. With ₹15L: tax ≈ ₹1.54L (at new regime slabs). For most salaried with maximum 80C/80CCC utilization: new regime often works out better for income ≤₹15L. For very high deductions (HRA + 80C + 80D + 80CCC): old regime may be better. Advice: use the online tax calculator on incometax.gov.in to compare both regimes before choosing.
How to claim 80CCC in ITR?
Claiming Section 80CCC in ITR: Applicable ITR forms: ITR-1 (only salary + one house property + other income — simple return), ITR-2 (multiple income sources but no business), ITR-3/4 (business income). In the ITR: Schedule VI-A (Deductions under Chapter VIA). Enter amount contributed to pension fund under Section 80CCC. Certificate/proof: premium receipt from LIC or insurer showing contributions. Keep handy for scrutiny — submit to employer for Form 16 TDS adjustment. TDS/Form 16: intimate 80CCC premium to employer before year-end so employer adjusts TDS accordingly. Otherwise, you claim at ITR and get refund of excess TDS. Year of deduction: deduction in year of payment (not policy year). Online filing: fill Schedule VI-A on the income tax portal, enter 80CCC amount — auto-calculates within ₹1.5L 80CCE ceiling.
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