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Boccd nps

Krishna (Senior Engineer (QA)) (85 Points)

27 February 2017

I have a very basic doubt regaring NPS tax claim, lets consider the following sceanrio

Total Salary : 700000

Deductions under 80C(LIC, PPF,...): 150000
Contribution towards NPS 80CCD: 50000
Total deductions : 200000

Net Taxable income : 500000

Is my above calculation correct?. If i contribute 50k into NPS per year, will i be able to claim in under 80CCD(1B) directly?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 27 February 2017

Yes, correct. Employee's contribution from salary is deductible in section 80CCD(1). This contribution along with Sec 80C has 1.5 Lakh investment limit for tax deduction. So, if Employees have savings Rs. 1,50,000 under 80C excluding NPS Deductions, then the Employee can show their NPS Deductions, under 80 CCD(1B), which is over the 1,50,000 Limit.