Rebate U/S 80CCD(2)

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the rebate available under Section 80CCD(2) for employer contributions to an employee's NPS account. It explains that the eligible deduction is based on the amount credited in the relevant financial year, typically reflected in Form 16. The advice suggests that if the Form 16 shows £0 for U/S 80CCD(2) despite a significant NPS balance, employees can still claim a deduction up to 10% of their salary for the relevant assessment year.

PARMANAND PRASAD

PARMANAND PRASAD (Querist)

30 October 2021 SAIL pension portal is being reflected the total employer's contributed amount for the period from Jan 2012 to Mar 2021 and the said same figure have been transferred to the employee's NPS account in 2021. I have to know, what amount have to qualify for rebate u/s 80ccd(2)?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 October 2021 Follow form 16.
The deduction should be the amount credited in FY 2020-21.

PARMANAND PRASAD

PARMANAND PRASAD (Querist)

30 October 2021 Thanks for reply Sir, but kindly eloborate if an employee get total amount in his NPS account ₹2,94,000/ and his Basic+DA=₹55000/month
And u/s 80CCD(2) = ₹0 in his Form16

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 October 2021 You may add 10% of your salary as contribution for AY 2021-22; i.e. 66K under your salary income and claim the same amount as deduction u/s. 80CCD(2).

Message likes : 1 times

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