Yes you can do so... its permissible
Regarding 80 ccd(1) and 80 ccd(1b)
Respected Sir I am a central govt employee and I am saving maximum amount of ? 1,50,000 under 80 c in PPF .Employee contribution to NPS under 80 ccd (1) is around ?75,000.Can I save more I.e. ? 50,000 under ccd (1b) ? Thanking You Yours Faithfully Nitin
Asked 8 years ago in Income Tax
OK Ma'am I already have an NPS tier 2 account.Can I save under ccd (1b) under the same account and how to do it? Thanking You Yours Faithfully Nitin
Asked 8 years ago
Dear Nitin,
Please note that total deduction limit under Section 80C (eg.PPF, LIC etc) + Section 80CCD (eg. NPS) cannot exceed INR 2 lakhs.
Hence, you can get maximum deduction of INR 50000 us/s 80CCD over and above your PF.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Respected Sir/Madam I would like clarification regarding 80 ccd(1b).Can i save in 80 ccd (1b) excess amount, if I save a maximum of Rs 2 Lakhs in 80 c and 80 ccd(1)? Thanking You Nitin
Asked 8 years ago
Respected Sir/Madam I would like clarification regarding 80 ccd(1b).Can i save in 80 ccd (1b) excess amount, if I save a maximum of Rs 2 Lakhs in 80 c and 80 ccd(1)? Thanking You Nitin
Asked 8 years ago
Respected Sir/Madam I would like clarification regarding 80 ccd(1b).Can i save in 80 ccd (1b) excess amount, if I save a maximum of Rs 2 Lakhs in 80 c and 80 ccd(1)? Thanking You Nitin
Asked 8 years ago
Respected Sir/Madam I would like clarification regarding 80 ccd(1b).Can i save in 80 ccd (1b) excess amount, if I save a maximum of Rs 2 Lakhs in 80 c and 80 ccd(1)? Thanking You Nitin
Asked 8 years ago
Hi,
Additional Rs 50,000 benefit under Section 80CCD (1B): There is an additional deduction of Rs 50,000 available for financial year 2015-16 under Section 80CCD (1B). This is over and above the section 80C limit, which means you can claim up to Rs 1.5 lakh for your Section 80C investments (including NPS), and an additional up to Rs 50,000 for NPS contributions made in the Financial year 2015-16.
Employer contribution under Section 80CCD(2): If you are a salaried individual andyour employer also contributes to the NPS on your behalf, then the amount is eligible for deduction under Section 80CCD (2). This deduction is over and above the two aforementioned deductions under Section 80C and 80CCD (1B). Here too, there is a maximum limit to the employer’s contribution eligible for a deduction, which is fixed at 10% of your basic salary (including DA).
So, You can as individual save upto Rs 2 Lakhs (including 80 c + 8occd (1) ) and also additional employers contribution under section 80 ccd(2) restricted to 10% of your basic salary.
hope it clears your doubts
Yes, as per section 80CCE you can deposit upto RS 50000 to NPS to get the deduction w.e f A.Y 16-17.
It is a query specifically addressed to other experts.
Hello Nitin,
You can claim a deduction u/s 80C for a maximum of Rs.1,50,000/- only whereas you can claim an additional deduction u/s 80CCD if you invest in NPS for a maximum of Rs.50,000/- only. So the maximum deduction you may claim in any case will not exceed Rs.200,000/-.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Section 80CCD(1B) ,
Additional exemption up to Rs 50,000 in NPS is eligible for income tax deduction.
Therefore, the total tax benefits that can be claimed for NPS under Section 80CCD(1) + Section 80CCD(1B) equals to 2 Lakhs for this financial year.
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