SECTIONS 87 TO 89

Tax relief/Rebate

SECTION 88  l REBATE ON LIFE INSURANCE PREMIA,
CONTRIBUTION TO PROVIDENT FUND, ETC.

620.  Notified provident fund under section 88(2)(v)

In exercise of the powers conferred by clause (v) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Public Provident Fund, established under the Public Provident Fund Scheme, 1968, for the purposes of the said clause for the assessment year 1991-92 and subsequent assessment years.

Notification : No.  SO 55(E), dated 31-1-1991.

621. Notified Deposit Scheme under section 88(2)(ix)

In exercise of the powers conferred by clause (ix) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the National Savings Scheme, contained in the National Savings Scheme Rules, 1992 as a deposit scheme for the purpose of clause (ix) of sub-section (2) of section 88.

2. This notification is effective from the 1st day of October, 1992.

Notification : No.  GSR 819(E), dated 21-10-1992.

622.  Notified savings certificates under section 88(2)(xi)

In exercise of the powers conferred by clause (xi) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the National Savings Certificates (VIII Issue), issued under the Government Savings Certificates Act, 1959 (46 of 1959), as saving certificates for the purposes of the said clause for the assessment year 1991-92 and subsequent assessment years.

Notification : No.  SO 54(E), dated 31-1-1991.

623. Notified unit-linked insurance plan of LIC Mutual Fund under section 88(2)(xiii)

In exercise of the powers conferred by clause (xiii) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Dhanaraksha- 1989 plan of the LIC Mutual Fund referred to in the aforesaid clause as the unit-linked insurance plan of that Mutual Fund for the purposes of the said clause for the assessment year 1991-92 and subsequent assessment years.

Notification : No.  SO 56(E), dated 31-1-1991.

624. Notified annuity plans of Life Insurance Corporation of India under section 88(2)(xiiia)

Notification 1

In exercise of the powers conferred by clause (xiiia) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the “Jeevan Dhara” and “Jeevan Akshay” plans of the Life Insurance Corporation of India, as filed by that Corporation with the Controller of Insurance under sub-section (1) of section 40B of the Insurance Act, 1938 (4 of 1938), read with rule 17C of the Insurance Rules, 1939 and section 26, read with sub-section (2) of section 3, of the said Insurance Act, respectively, as the annuity plans of that Corporation for the purposes of said clause (xiiia).

2. This notification shall be deemed to have come into force on the l st day of April, 1992.

Notification : No. GSR 801(E), dated 7-10-1992.

Notification 2

In exercise of powers conferred by clause (xiiia) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the New Jeevan Dhara and New Jeevan Akshay Plans of the Life Insurance Corporation of India, as filed by that Corporation with the Controller of Insurance under sub-section (1) of section 40B of the Insurance Act, 1938 (4 of 1938), read with rule 17C of the Insurance Rules, 1939, and section 26 read with sub-section (2) of section 3 of the said Insurance Act respectively, as the annuity plans of that Corporation for the purposes of the said clause (xiiia).

2. This notification shall be deemed to have come into force on the 1st day of February, 2002.

Notification : No. 71/2002 [F. No. 174/9/2001-IT (A-I)], dated 2-4-2002.

Notification 3

In exercise of powers conferred by clause (xiiia) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the New Jeevan Akshay-II Plan of the Life Insurance Corporation of India, as filed by that Corporation with the Insurance Regulatory and Development Authority, as the annuity plan of the Life Insurance Corporation of India for the purposes of the said clause (xiiia).

2. This notification shall come into force from the date of its publication in the Official Gazette.

Notification : No. So 569(E), dated 13-5-2004.

625. Notified Unit Scheme under section 88(2)(xiiic)

Notification 1

In exercise of the powers conferred by sub-clause (xiiic) of clause (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the “Retirement Benefit Unit Scheme” set up by the Unit Trust of India as a pension fund for the purposes of the said sub-clause.

Notification : No. SO 634(E), dated 1-9-1994.

Notification 2

In exercise of the powers conferred by clause (xiiic) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the “Kothari Pioneer Pension Plan”, set up by the Kothari Pioneer Mutual Fund being a mutual fund notified by the Government of India in the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes vide Notification number 9509, S.O. 232(E), dated the 18th March, 1994 under section (23D) of section 10 of the said Act, as a pension fund for the purposes of the said clause (xiiic).

Notification : No. SO 76(E), dated 30-1-1997.

Notification 3

In exercise of the powers conferred by clause (xiiia) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the New Jeevan Dhara-I and New Jeevan Akshay-I plans of the Life Insurance Corporation of India, as filed by that Corporation with the Insurance Regulatory and Development Authority, as the annuity plans of that Corporation for the purposes of the said clause (xiiia).

2. This notification shall come into force from the date of its publication in the Official Gazette.

Notification : No. 53/2003, [F.No. 174/9/2001-IT(AI)], dated 18-3-2003.

626. Notified deposit scheme of National Housing Bank under section 88(2)(xiv)

In exercise of the powers conferred by clause (xiv) of sub-section (2) of section 88 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Home Loan Account Scheme of the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987), for the purposes of the said clause for the assessment year 1991-92 and subsequent assessment years.

Notification : No.  SO 57(E), dated 31-1-1991.

627. Computation of surcharge on the amount of income-tax where assessee is entitled to rebate under Chapter VIII

1. Central Board of Direct Taxes have received queries from the assessees, who are to file their returns of income for the assessment year 1991-92, regarding computation of surcharge on income-tax where the total income of a person exceeds Rs. 75,000.  The queries are as to whether surcharge is to be computed on the amount of income-tax before or after allowing tax rebate under Chapter VIII of the Income-tax Act, i.e., tax rebate on life insurance premia, contributions to provident fund and investment in certain new shares or units, etc.

2. This is to clarify that surcharge is to be computed on the amount of income-tax as reduced by the tax rebate calculated under Chapter VIII of the Act.

Circular : No. 606, dated 20-6-1991.