Is there income tax rebate under 80C for investment under LIC's Varishtha pension Bima Yojana?
Investment under **Varishtha Pension Bima Yojana ,** does not qualify for any tax deduction under section 80C or 80CCD. Moreover, the pension income is taxable as per the tax slab of the pensioner. However, like any other insurance policy, amount received on the death of the pensioner will be tax-free u/s 10(10D) in the hands of the nominee. Further, there is no deduction of tax at source (TDS) and therefore, no hassle to provide form no. 15G/15H etc. In the budget of 2015, **the Finance Minister Mr. Arun Jaitley has made Varishtha Pension Bima Yojana to be exempt from Service Tax**, i.e. w.e.f. 1st April, 2015 no service will be levied on the premium paid towards this scheme, up to F.Y. 2014-15 this scheme has been attracting a service tax of 3.09% and the investors have been paying this tax over and above their investment amount.