The reader is right. The title to the subject in The Hindu dated February 1 would require correction in that the aggregate deduction under Sec. 80C and the contributions to annuity plans or pension funds under Sec. 80CCC or Sec. 80CCD should not exceed Rs. 1 lakh.
Since the contribution under the plan approved under Sec. 10(23AAB) alone would fall under Sec. 80CCC, there is probably no overlapping between the three provisions. It appears that the contribution to the plan covered under Sec. 80CCC cannot be claimed under Sec. 80C(2)(ii), though the language of the provision would permit such a claim. Till such time there is no official clarification, contribution for policies covered by Sec. 80CCC cannot be claimed under Sec. 80C so as to avoid tax on EET basis.
It will not be safe to assume that there will be no liability on the amount drawn by way of lump sum or as annuities with reference to Sec. 80C even as was advised by a corporate agent and an officer to a bank to another reader which was also discussed in the same issue dated February 1, 2010.
In view of some overlapping between Sec. 80C and 80CCC, there is some confusion which can only be sorted out by the Central Board of Direct Taxes.
