Q. Please tell me whether the annual premium paid under Atal Pension Yojana and accident death claim of the Union government are eligible for deduction under Section 80CC ?
Ravinddra Kumar
A. Contribution to Atal Pension Yojana is deductible under Section 80CCD(1B) of Income Tax Act, 1961. It is treated on par with NPS. This section provides for deduction of up to ₹50,000 over and above the overall limit of ₹1,50,000. provided under Section 80CCE.
Q. I am a bank pensioner and senior citizen. I have deposited some funds with banks. Kindly guide me on the following:
1. Is standard deduction applicable to pensioners ?
2. How do I claim exemption under Section 80TTB?
Vijayakumar O
A. Standard deduction is available for pension received from your old employer to the extent of ₹50,000 per year.
Deduction under Section 80TTB is allowed for all senior citizens up to a limit of ₹50,000 per year for interest received from the funds deposited in banks, post office schemes and co-operative societies engaged in the functions of bank.
Section 80TTB deduction benefits can be claimed from the respective ITR under deductions under Chapter VIA. You may enter the appropriate deduction amount based on your interest income subject to a limit of ₹50,000.
Q. I am a senior citizen with only interest income. However an amount of ₹1,500 is credited to my bank account every month by LIC P&GS Department, being my employers’ superannuation annuity.
In addition, I receive an annuity of ₹830 per month from LIC Jeevan Suraksha Policy. I am including these receipts in my income tax return. The question is am I eligible for standard deduction of ₹50,000?
Two, my wife, being a Central government retiree, has opted for CGHS and I am also a beneficiary under the CGHS Scheme.
She made a lump sum payment (whole life coverage for both of us) at the time of retirement.
We do not have any other health insurance coverage at all. But, we do incur approximately ₹5,000 each year on out patient consultations / medicines that are not allowed by CGHS for reimbursement.
This being the case, how much can we claim under Section 80D? Kindly clarify.
Janakiram Ramamurthy
A. First, you will be eligible for a standard deduction of ₹50,000 for the amount received from your former employer as superannuation annuity pension, as the same is declared under “Income from Salaries”.
However, the annuity pension received from the life insurance policy is covered under “Income from Other Sources” and thus, standard deduction cannot be availed of.
Two, under Section 80D for senior citizens with no coverage whatsoever from any policy, medical expenses incurred can be availed up to ₹50,000.
However, in your case, since you are covered under CGHS, you will not be eligible to claim deduction towards medical expenses incurred for which reimbursement is not received.
(The author is partner, GSS & Associates, Chartered Accountants, Chennai)
