N p s

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2015 Dear Professionals,

I want know about maximum deduction u/s 80ccd. is this Section give beyond
Rs. 150000/- fecilities for income Tax Computation. if it gives please give detailes. because My 80C deduction except 80CCD are cross the Rs. 150000/- for the
A Y 15- 16. please clarify me.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 April 2015 Additional 50000/- limit will be applicable from AY 2016-17.
.

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2015 Thank You CA. Paras Sir for your reply.
what about AY 2015-16 ? Is it give full deduction beyond the Rs.150000/-? i have additional Rs 100000/- for NPS except 80C dedutions Rs.150000/-. Can i claim total Deduction Rs. 250000/- during the FY 2014 - 2015 . please Clarify me

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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03 August 2024 Under Section 80CCD of the Income Tax Act, there are specific provisions related to deductions for contributions to the National Pension System (NPS). Let’s break down the details for you:

### **Understanding Section 80CCD Deductions**

1. **Section 80CCD(1):**
- **Deduction Limit:** This section allows a deduction of up to **₹1,50,000** for contributions made by the taxpayer to the NPS.
- **Eligibility:** This deduction is included within the overall limit of ₹1,50,000 prescribed under Section 80C. Hence, if you are claiming deductions under Section 80C (which includes 80CCD(1)) up to ₹1,50,000, the contribution to NPS would be part of this limit.

2. **Section 80CCD(1B):**
- **Additional Deduction:** This section provides an additional deduction of up to **₹50,000** for contributions made to the NPS. This is over and above the ₹1,50,000 limit under Section 80C.
- **Total Possible Deduction:** Combining both sections, the total possible deduction under 80CCD (1 + 1B) can be **₹2,00,000** in a financial year. This is ₹1,50,000 under Section 80CCD(1) (within the ₹1,50,000 limit of 80C) and an additional ₹50,000 under Section 80CCD(1B).

### **For Assessment Year 2015-16 (Financial Year 2014-15):**

1. **80C Limit:**
- **Maximum Deduction:** You can claim a maximum of **₹1,50,000** under Section 80C, which includes all eligible investments and contributions, including those under Section 80CCD(1).

2. **Additional Deduction for NPS (80CCD(1B)):**
- **Additional Limit:** An additional deduction of up to **₹50,000** is available under Section 80CCD(1B) specifically for contributions to the NPS.

### **Scenario:**

- **Total Contribution to NPS:** ₹1,00,000 (claimed under 80CCD)
- **Other 80C Deductions:** ₹1,50,000

**Deductions Breakdown:**

- **Section 80CCD(1):** ₹1,00,000 (part of the overall ₹1,50,000 limit under 80C)
- **Section 80CCD(1B):** ₹50,000 (additional deduction over and above 80C)

**Total Deduction Available:**

- **Under 80C (including 80CCD(1)):** ₹1,50,000
- **Additional Under 80CCD(1B):** ₹50,000

**Total Possible Deduction:** ₹2,00,000

### **Summary:**

For FY 2014-15 and AY 2015-16:
- You can claim a total deduction of **₹2,00,000** if you have:
- ₹1,50,000 under Section 80C (including Section 80CCD(1))
- Additional ₹50,000 under Section 80CCD(1B)

**Note:** Ensure that the total deductions claimed under 80C and 80CCD(1) combined do not exceed ₹1,50,000, and then you can claim an additional ₹50,000 under Section 80CCD(1B) for NPS contributions.

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