1What does Section 80CCC cover?
Premiums paid to certain pension/annuity plans from insurers , deductible in the old regime — but within the combined Rs 1,50,000 limit shared with 80C and 80CCD(1).
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ArticleSection 80CCC is a lesser-known cousin of 80C that covers contributions to certain pension plans. Understanding how it shares the overall limit avoids double-counting. Here's how 80CCC works.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
80CCC lets you deduct premiums paid to certain pension plans, but it shares the Rs 1,50,000 limit with 80C. Here's how it works.
80CCC is different from the additional Rs 50,000 NPS deduction under 80CCD(1B), which is over and above the Rs 1,50,000. 80CCC sits inside the Rs 1,50,000; 80CCD(1B) sits on top. Mixing them up leads to over-claiming.
While the premium is deductible, the pension or annuity you eventually receive from the plan is taxable as income in the year you receive it. So 80CCC defers tax to your retirement years rather than removing it entirely.
Because 80CCC shares the Rs 1,50,000 limit, decide how to split that limit across pension plans, PPF, ELSS, insurance and other 80C options. If you want deduction beyond Rs 1,50,000, that comes from NPS under 80CCD(1B), not 80CCC.
Premiums paid to certain pension/annuity plans from insurers , deductible in the old regime — but within the combined Rs 1,50,000 limit shared with 80C and 80CCD(1).
No — 80C, 80CCC and 80CCD(1) share a single Rs 1,50,000 ceiling. A pension-plan premium and your 80C investments draw from the same pot.
Yes — the pension or annuity you later receive is taxable as income in the year of receipt. 80CCC defers the tax to your retirement years rather than removing it.
Holding a pension plan? Write to the firm and we'll fit 80CCC into your 80C limit without over-claiming.