Deduction under 80CCD (1B)

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State government employees can indeed claim the additional Rs. 50,000 deduction under Section 80CCD (1B) of the Income Tax Act. This deduction is available if an employee has an NPS account with a PRAN (Permanent Retirement Account Number). Investments made into the NPS Tier I account, whether directly by the individual or through an agent, are eligible for this tax relief.

Husseini

Husseini (Querist)
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01 March 2022 Can state govt. employee get additional deduction under 80CCD (1B) of Rs.50000/-
Salary as per below
Basic Rs. 437600/-
DA Rs. 74392/-
other allowances ( incl HRA,TA,DCPS) Rs.200168/-
Total Gross Salary Rs. 712160/-
Investment
80C - LIC,NSC Rs.150000/-
80CCD(1) - Employee Contribution Rs.51834/-
80CCD(2) - Employer Contribution Rs.72444/-

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 March 2022 Yes, it can be claimed...

Husseini

Husseini (Querist)
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01 March 2022 If employer have already NPS account (PRN) of employee than how the employee get additional deduction under 80CCD(1B).

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 March 2022 The PRAN is allotted to individual investor. The investor is eligible to claim the relief for any investment made to his NPS Tier I account, be directly by himself or through any agent.

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