80CCD(2) deduction under new tax regime

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Under the new tax regime (Section 115BAC), the 80CCD(2) deduction for NPS contributions is capped at 14% of your Basic Salary plus Dearness Allowance (DA). If your Basic+DA is £15 lakh, 14% amounts to £2,10,000. Your employer can deduct this full amount for NPS, and you can claim the entire £2,10,000 as a deduction from your taxable salary income, with no further monetary limit beyond the 14% calculation.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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23 October 2024 I have read that maximum 14% of salary (Basic+DA) is allowed as deduction u/s 80CCD(2). But is there a maximum amount of limit of the said deduction ? If my salary is 15.00 lac (Basic +DA) and 14% of which comes to Rs. 2,10,000/-. Whether employer can deduct 2,10,000/- as NPS on behalf of me ? And whether I can get deduction of 2,10,000/- from my salary income ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 October 2024 Yes. but the benefit of this amendment has been made applicable only to the taxpayers who are opting for the new tax regimes under Section 115BAC.

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Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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23 October 2024 Of course sir. Applicable only under new tax regime. But maximum limit of benefit sir ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 October 2024 No other cap except 14% of Basic+DA.

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