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)
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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