Section 80CCA of ITA, 1961 : Section 80Cca: Deduction In Respect Of Deposits Under National Savings Scheme Or Payment To A Deferred Annuity Plan

Explanation using Example

Imagine Mr. Sharma, an individual taxpayer, decides to invest in a pension scheme approved by the Central Government in the financial year 1989-90. He deposits Rs. 30,000 into the scheme. According to Section 80CCA(1) of the Income-tax Act, 1961, Mr. Sharma is eligible for a deduction of up to Rs. 30,000 from his taxable income for that year because the provision states that for the assessment year commencing on 1st April 1989, the deduction limit is increased from Rs...

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