# The Finance Act, 1973, Section 8: Amendment of section 80C

- Act: The Finance Act, 1973 (Act 21 of 1973)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1973/section/8/

## Text

Amendment of section 80C 8. In section 80C of the Income-tax Act, with effect from the 1st day of April, 1974,— (a) for sub-section (1), the following sub-section shall be substituted, namely:— “(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the pro-visions of this section, an amount calculated, with reference to the aggregate of the sums specified in sub-section (2), at the following rates, namely:— (a) | where such aggregate does not exceed Rs. 2,000 | The whole of such aggregate; (b) | where such aggregate exceeds . Rs. 2,000 but does not exceed Rs 5.000 | Rs. 2,000 plus 50 percent of the amount by which such aggregate exceeds Rs. 2,000: (c) | where such aggregate exceeds Rs. 5,000 | Rs. 3,500 plus 40 per cent, of the amount by which such aggregate exceeds Rs 5,000.”; (b) in sub-section (2),— (i) for sub-clause (ii) of clause (a), the following sub-clause shall be substituted, namely:— “(ii) to effect or to keep in force a contract for a deferred annuity on the life of the assessee or on the life of the wife or husband or any child of the assessee: Provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity;”; (ii) in clause (g), for item (2) of sub-clause (i), the following item shall be substituted, namely: — “(2) to effect or to keep in force a contract for a deferred annuity on the life of any member of such association of body or any child of any of the members of such association or body: Provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; or” [Finance Act, 1973] © Copyright. Taxmann Publications Pvt. Ltd.

---
Published by eCourtsIndia together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957.