if an employee is investing 10% of his salary in NPS and he is having other savings amounting to Rs. 1,80,000 in a year. Then can he allowed to show his NPS contribution under section 80ccd(1b).
monika sharma (accountant) (24 Points)
04 December 2019if an employee is investing 10% of his salary in NPS and he is having other savings amounting to Rs. 1,80,000 in a year. Then can he allowed to show his NPS contribution under section 80ccd(1b).
Priyank
(CA Final Student)
(139 Points)
Replied 04 December 2019
The additional deduction of Rs. 50,000/- under Section 80CCD(1B) is available to assess over and above the benefit of Rs. 1.50 Lakhs available as a deduction under Sec 80CCD(1). Thereby, raising the maximum limit of exemption to Rs. 2.00 Lakhs with Section 80CCD(1) + Section 80CCD(1B).
monika sharma
(accountant)
(24 Points)
Replied 04 December 2019
Yes mam . You are right. My doubt is can the individual show other savings in 80c and NPS contribution under section 80ccd(1b). Contribution made by him is a mandatory deduction i.e. 10% of salary covered in 80ccd(1)
Priyank
(CA Final Student)
(139 Points)
Replied 04 December 2019
The maximum limit for tax saving under Section 80C is Rs 1.5 lakh
Kapadia Pravin
(17249 Points)
Replied 04 December 2019
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 10 December 2019
NPS contribution under section 80ccd(1b) is only Rs. 50000.
CAclubindia
