Premium paid under Pension Plans is treated tax free under Sec 80 CCC (upto a max of 10,000 Rs). So does that mean you can make a total tax saving of Rs 1,10,000 (1 lakh under Sec 80 C and 10,000 Rs under Sec 80 CCC)? Unfortunately no is the answer. If you save 10,000 Rs under Sec 80CCC, then the maximum amount eligible for tax saving under Sec 80 C is Rs 90,000 only.
As i had already stated, in Pension Plans only 1/3 rd of maturity amount is tax free. The rest is given as pension, which is treated as normal income and taxed accordingly. If you withdraw entire maturity amount in one go, then you will have to pay tax on 2/3 rd of the amount.
As i had already stated, in Pension Plans only 1/3 rd of maturity amount is tax free. The rest is given as pension, which is treated as normal income and taxed accordingly. If you withdraw entire maturity amount in one go, then you will have to pay tax on 2/3 rd of the amount.
