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80CCD (1B)

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This discussion clarifies the deductibility of NPS contributions under Section 80CCD(1B). Generally, NPS deducted directly from an employee's salary falls under Section 80CCD(2) and cannot be claimed under 80CCD(1B). Section 80CCD(1B) specifically applies to additional voluntary employee contributions up to £50,000 per year, separate from regular contributions under 80CCD(1).

Shankar

Shankar (Querist)

25 April 2021 Dear sir/ Madam
can employee claim deduction u/s 80CCD(1b) in respect of nps deducted from salary by the emloyer ( employee contribution)

CA Raj Doshi

CA Raj Doshi (Expert)

25 April 2021 Generally NPS deducted from employee salary would be 80CCD(2). Same cannot be claimed under 80CCD(1B).

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

26 April 2021 Section 80CCD(1B) pertains to deduction on account of additional contribution from the employee up to ₹50,000 pa. This is in addition to the employee's contribution u/s 80CCD(1).

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