The existing provisions contained in sub-section (1) of section 8OCCD, inter alia, provide that in the case of an individual, employed by the Central Government or any other employer on or after 1St January, 2004, who has in the previous year paid or deposited any amount in his account under a pension scheme notified or as may be notified by the Central Government, a deduction of such amount not exceeding ten per cent. of salary is allowed. This is subject to a limit of one lakh rupees provided under section 8OCCE.
It is proposed to amend sub-section (1) of the said section so as to provide that an individual employed by the Central Government on or after 1st January, 2004 or, being an individual employed by any other employer shall be allowed a deduction of the amount deposited by him in his account under a pension scheme notified or as may be notified by the Central Government to the extent it does not exceed ten per cent. of his salary. It is further proposed to insert new sub-section (1A) so as to provide that the amount of deductions under sub-section (1) shall not exceed one hundred thousand rupees.
These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015- 16 and subsequent years.