Sec 80ccd read with sec36(1)(iva)
This query is : Open
05 March 2013
Sec 36(1)(iv)
any sum paid by the assessee as an employer by way of contribution towards a pension scheme, as referred to in section 80CCD, on account of an employee to the extent it does not exceed ten per cent of the salary of the employee in the previous year.
the above exp is allowed u/s36,
My query is
does this amount is same as specified u/s 80CCD(2)
If yes, then we can say that it is case of double deduction i.e. to both employer & employee( it can exceed Rs1 lac limit)
any sum paid by the assessee as an employer by way of contribution towards a pension scheme, as referred to in section 80CCD, on account of an employee to the extent it does not exceed ten per cent of the salary of the employee in the previous year.
the above exp is allowed u/s36,
My query is
does this amount is same as specified u/s 80CCD(2)
If yes, then we can say that it is case of double deduction i.e. to both employer & employee( it can exceed Rs1 lac limit)
Nikhil Kaushik
(Expert)
05 March 2013
Dear Ankit,
in one case, its the employer who is getting deduction for an expense (section 36) which he/she paid for.
On the other hand it is the employee who is claiming deduction for investment made in a pension scheme out of his salary.
Where is question of double deduction? both the employer and employee are claiming deduction for their respective contributions.
in one case, its the employer who is getting deduction for an expense (section 36) which he/she paid for.
On the other hand it is the employee who is claiming deduction for investment made in a pension scheme out of his salary.
Where is question of double deduction? both the employer and employee are claiming deduction for their respective contributions.
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07 March 2013
Then what is difference between amount specified u/s 80CCD(1) and Sec80CCD(2)
Nikhil Kaushik
(Expert)
07 March 2013
Sorry Ankit,
You are correct with respect to 80CCD(2). contribution under 80ccd(2) does provide for double deduction - to employee under 80ccd(2), and to the employer under sec 36.
My earlier answer was incomplete and only referred to 80ccd(1).
Amount under 80CCD(1) and 80CCD(2) are different - sub section (1) refers to the employee's contribution whereas sub section (2) refers to employer's contribution.
Needless to say that 80CCD(2) shall apply only in case the assessee is an employee whereas 80CCD(1) shall be available to any individual assessee.
You are correct with respect to 80CCD(2). contribution under 80ccd(2) does provide for double deduction - to employee under 80ccd(2), and to the employer under sec 36.
My earlier answer was incomplete and only referred to 80ccd(1).
Amount under 80CCD(1) and 80CCD(2) are different - sub section (1) refers to the employee's contribution whereas sub section (2) refers to employer's contribution.
Needless to say that 80CCD(2) shall apply only in case the assessee is an employee whereas 80CCD(1) shall be available to any individual assessee.
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07 March 2013
Thanks Nikhil for confirming
at least my interpretation of law is correct this time
at least my interpretation of law is correct this time
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