Section 280G — Machinery of Annuity Deposit Scheme

Case Laws & Commentary

Section 280G — Machinery of the Annuity-Deposit Scheme (Chapter XXII-A)

Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise

Status: Omitted by the Finance Act, 1988, w.e.f. 1-4-1988 (Chapter inoperative since 1-4-1969). Historic provision.

Finance Act, 2026: No change. The Chapter was omitted w.e.f. 1-4-1988 and is not amended by the Finance Act, 2026; any reference to a like-numbered provision in the Income-tax Act, 2025 is a separate enactment and not this section.

Place in the scheme: Machinery of the Annuity-Deposit Code — manner, time and proof of making the deposit.

Litigation profile: No reported authority traced on this section as such.

A. COMMENTARY

Place in the scheme

In the architecture of Chapter XXII-A this provision formed part of the machinery of the annuity-deposit code, concerned with manner, time and proof of making the deposit. The annuity-deposit scheme was a self-contained code that required the deposit (s.280C), measured it on ‘adjusted total income’ (s.280-O and connected provisions), repaid it as a ten-year annuity (s.280D) and was worked through a detailed Scheme framed under s.280W. The provisions between the charge and the repayment carried the working machinery — computation, manner and time of deposit, interest, certificates, special cases and recovery.

The text of the section

The current consolidated Income-tax Act, 1961 prints this section only as part of the composite omission note set out in Part B; it does not reproduce the pre-omission text, and the arrangement of sections shows the number simply as ‘[Omitted.]’. The Chapter was also renumbered more than once between 1964 and its omission in 1988, so a given number did not always carry the same heading. The role stated above is therefore drawn from the scheme's known architecture; the exact marginal heading and sub-section text of this particular number are not reproduced here.

Governing case law sits elsewhere

No reported decision of the Supreme Court, a High Court or the Tribunal has been traced turning on this section as such. The Chapter's case law is concentrated on validity (s.280C — Hari Krishna Bhargav) and on the taxability of repayments received otherwise than by the depositor (s.280D — Kapil Mohan and the High Court line), to which the reader is referred.

B. STATUTORY STATUS (verbatim chapter note, as amended up to the Finance Act, 2025)

The Income-tax Act, 1961 as it presently stands does not print the individual annuity-deposit sections; the whole of Chapter XXII-A survives only as the composite omission note reproduced below. This is the only text concerning this section that exists in the bare Act, and it is reproduced verbatim.

CHAPTER XXII-A — ANNUITY DEPOSITS

[Chapter XXII-A, consisting of sections 280A, 280B, 280C, 280D, 280E, 280F, 280G, 280H, 280-I, 280J, 280K, 280L, 280M, 280N, 280-O, 280P, 280Q, 280R, 280S, 280T, 280U, 280V, 280W and 280X, omitted by the Finance Act, 1988, w.e.f. 1-4-1988. The Chapter was inserted by the Finance Act, 1964, w.e.f. 1-4-1964 and has not been in operation since 1-4-1969 when the requirement as to annuity deposit was discontinued by the Finance Act, 1968, w.e.f. 1-4-1968 through an amendment made in section 280C.]

C. AUTHORITIES

No authority decides a point under this section; the Chapter's governing cases are cross-referenced.

Authorities directly on this section

No reported decision of the Supreme Court, the High Courts or the Income-tax Appellate Tribunal turns on this numbered section as such. The reported annuity-deposit litigation is concentrated on the validity of the scheme (s.280C / Chapter as a whole) and on the taxability of repayments under s.280D received otherwise than by the original depositor.

No direct authority on section 280G

Position: No reported Supreme Court, High Court or ITAT decision has been traced that decides a point arising specifically under this section of the annuity-deposit code.

Cross-reference: For the governing case law on the Chapter see Section 280C (validity — Hari Krishna Bhargav (1966) 59 ITR 243 (SC)) and Section 280D (repayment — Kapil Mohan (SC) and the High Court line it reconciled).