Investment u/s. 80ccd

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2015 Dear Experts,

In connection with the above,i have a doubt which i hope shall be cleared by our experts generously. Suppose my investments u/s 80C is full (limit of Rs. 1.50 lac.)with LIC, PPF etc. without investing a single penny u/s 80 CCD. Now as per the budget proposal 2015-16 shall i have to invest Rs. 1.50 lac to avail the extra tax benefit on Rs. 50000.00 or only Rs. 50000.00 can fetch me the same benefit.

Kindly revert with your precious comment.

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2015 Dear Experts,

Please revert.

T & R

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2015 Dear Experts. Kindly express your views and revert your precious opinion on the quoted subject.

Thanks & regards

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

01 August 2024 Under Section 80CCD of the Income Tax Act, there are specific provisions related to contributions made to the National Pension System (NPS). To address your query:

### **Investment under Section 80CCD:**

#### **Section 80CCD(1):**
- **Applicable Limit:** Contributions to the NPS are eligible for a deduction under Section 80CCD(1) up to ₹1.5 lakh. This is part of the overall limit of ₹1.5 lakh under Section 80C.
- **Combination with Section 80C:** If you have already utilized the full limit of ₹1.5 lakh under Section 80C (for LIC, PPF, etc.), any additional contribution to the NPS will not give you an extra deduction under Section 80CCD(1) as it will fall within the same limit of ₹1.5 lakh.

#### **Section 80CCD(1B):**
- **Additional Benefit:** Apart from the ₹1.5 lakh limit under Section 80C, you can claim an additional deduction of ₹50,000 under Section 80CCD(1B) specifically for NPS contributions.
- **Applicability:** This deduction is over and above the ₹1.5 lakh limit under Section 80C. So, if you have utilized the full ₹1.5 lakh under Section 80C, you can still claim an additional ₹50,000 deduction under Section 80CCD(1B) for contributions to the NPS.

### **Summary:**
- If you have already invested ₹1.5 lakh under Section 80C (e.g., LIC, PPF), you do not need to invest ₹1.5 lakh more in NPS to avail the additional benefit.
- You can invest up to ₹50,000 in NPS under Section 80CCD(1B) to get the extra tax benefit, even if you have exhausted the ₹1.5 lakh limit under Section 80C.

So, to maximize your tax benefits, you only need to invest ₹50,000 in NPS to avail the additional deduction under Section 80CCD(1B) if you have already utilized the full ₹1.5 lakh under Section 80C.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now