ITR 1
This query is : Resolved
07 June 2018
Hello Sir
while taking deduction u/s 80ccd(1) n 80ccd(2)...the total amount is to be entered there means including interest g?....please solve my query..
Thanking You
07 June 2018
You have to enter investment amount only.
21 August 2018
sr g .pls tell me 1 thing g....whether we have to enter whole amount of contribution or the amount that is shown in the Nsdl statement??..
22 August 2018
Entire contribution invested in financial year maximum 50000/- available under 80CCD
23 August 2018
are u sure sir g???
02 August 2024
Under Sections 80CCD(1) and 80CCD(2) of the Income Tax Act, contributions to the National Pension System (NPS) are eligible for tax deductions. Here's how to handle these deductions and the amounts to be entered:
### **1. Deduction Under Section 80CCD(1) and 80CCD(2)**
- **Section 80CCD(1):** This section allows an individual to claim a deduction for contributions made to the NPS up to ₹1.5 lakh in a financial year. This limit is included under the overall ₹1.5 lakh limit of Section 80C.
- **Section 80CCD(2):** This section allows for a deduction of contributions made by an employer to an employee's NPS account. This is over and above the ₹1.5 lakh limit of Section 80C and is not capped at ₹1.5 lakh but is limited to 10% of the salary (basic + DA) in the case of an employee.
### **2. Amount to Enter for Deductions**
**For Section 80CCD(1):**
- **Enter the Total Contribution Amount:** Enter the amount you have contributed to the NPS during the financial year as per your own contribution. This amount should include the total amount contributed to the NPS, as shown in your NSDL (National Securities Depository Limited) statement or similar documents. It should not include interest, as the deduction is based on the principal amount contributed.
**For Section 80CCD(2):**
- **Enter the Employer's Contribution:** Enter the total contribution made by your employer as per your salary slips and NSDL statements. This amount is not capped at ₹1.5 lakh but is subject to the limit of 10% of the salary (basic + DA).
### **3. Handling Interest**
- **Interest on NPS Contributions:** The interest earned on the NPS account is not eligible for a deduction under Sections 80CCD(1) or 80CCD(2). The deduction is available only on the contributions made, not on the interest accrued.
### **Practical Steps:**
1. **Check NSDL Statement:** Verify your total contributions as reflected in your NSDL statement for the relevant financial year. This should include both your contributions and the contributions made by your employer if applicable.
2. **Fill in the Amounts:**
- For **Section 80CCD(1):** Enter the total amount of your contributions to the NPS (excluding interest).
- For **Section 80CCD(2):** Enter the total amount of contributions made by your employer (excluding interest).
### **Example:**
- **Your Contribution (80CCD(1)):** ₹50,000
- **Employer Contribution (80CCD(2)):** ₹60,000
- **Interest:** Not considered for the deduction
**In Your Tax Return:**
- **80CCD(1):** Enter ₹50,000.
- **80CCD(2):** Enter ₹60,000.
### **Summary:**
- **Enter contributions (not interest) as per the NSDL statement** for both Section 80CCD(1) and 80CCD(2).
- **For Section 80CCD(1):** Deduct up to ₹1.5 lakh from total contributions made.
- **For Section 80CCD(2):** Deduct the total employer contributions up to 10% of your salary.
Ensure to double-check these figures and consult your tax advisor or refer to the latest tax rules for any updates or changes in the guidelines.
### **1. Deduction Under Section 80CCD(1) and 80CCD(2)**
- **Section 80CCD(1):** This section allows an individual to claim a deduction for contributions made to the NPS up to ₹1.5 lakh in a financial year. This limit is included under the overall ₹1.5 lakh limit of Section 80C.
- **Section 80CCD(2):** This section allows for a deduction of contributions made by an employer to an employee's NPS account. This is over and above the ₹1.5 lakh limit of Section 80C and is not capped at ₹1.5 lakh but is limited to 10% of the salary (basic + DA) in the case of an employee.
### **2. Amount to Enter for Deductions**
**For Section 80CCD(1):**
- **Enter the Total Contribution Amount:** Enter the amount you have contributed to the NPS during the financial year as per your own contribution. This amount should include the total amount contributed to the NPS, as shown in your NSDL (National Securities Depository Limited) statement or similar documents. It should not include interest, as the deduction is based on the principal amount contributed.
**For Section 80CCD(2):**
- **Enter the Employer's Contribution:** Enter the total contribution made by your employer as per your salary slips and NSDL statements. This amount is not capped at ₹1.5 lakh but is subject to the limit of 10% of the salary (basic + DA).
### **3. Handling Interest**
- **Interest on NPS Contributions:** The interest earned on the NPS account is not eligible for a deduction under Sections 80CCD(1) or 80CCD(2). The deduction is available only on the contributions made, not on the interest accrued.
### **Practical Steps:**
1. **Check NSDL Statement:** Verify your total contributions as reflected in your NSDL statement for the relevant financial year. This should include both your contributions and the contributions made by your employer if applicable.
2. **Fill in the Amounts:**
- For **Section 80CCD(1):** Enter the total amount of your contributions to the NPS (excluding interest).
- For **Section 80CCD(2):** Enter the total amount of contributions made by your employer (excluding interest).
### **Example:**
- **Your Contribution (80CCD(1)):** ₹50,000
- **Employer Contribution (80CCD(2)):** ₹60,000
- **Interest:** Not considered for the deduction
**In Your Tax Return:**
- **80CCD(1):** Enter ₹50,000.
- **80CCD(2):** Enter ₹60,000.
### **Summary:**
- **Enter contributions (not interest) as per the NSDL statement** for both Section 80CCD(1) and 80CCD(2).
- **For Section 80CCD(1):** Deduct up to ₹1.5 lakh from total contributions made.
- **For Section 80CCD(2):** Deduct the total employer contributions up to 10% of your salary.
Ensure to double-check these figures and consult your tax advisor or refer to the latest tax rules for any updates or changes in the guidelines.
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