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80CCD(2) in private firms

Tax queries 296 views 2 replies

Kishore Bg

1 Points Posted on 01 June 2020

I work for a Private IT firm and for income tax relief I have my PF and Insurance. Recently i have opened a NPS account and gave a declaration to the company that I want to avail 80CCD(1B). As I was going through other documents on NPS, came across 80CCD(2) which helps to save tax beyond 1.5lks + 50k. I checked with my companies finance team and asked them to start allocating 5% of my Basic + DA to my PRAN number, but I got a reply that they need a minimum of 50 people to start this 80CCD(2).

IIs there any law that 80CCD(2) is dependent on the rules of the company , or is it the right of the employee to have investment in this section. Please advice.

Replies (2)

c.bakshi

practising company secretary

3221 Points Posted on 01 June 2020

Yes, when the law applicable on the company. they have to comply with it. you can invest in health insurance or on fixed deposit. you will get extra deduction in case of health insurance. interest on fd is exempt upto 50000.

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Posted on 15 June 2020

Yes when it is applicable on the company. If you employer is contributing to your NPS account you can claim deduction under section 80CCD(2). There is no monetary limit on how much you can claim, but it should not exceed 10% of your salary. On contributions made by you, you can claim deduction under section 80C or 80CCD(1B)