Suresh Kumar Ramasamy (Software Consultant) (36 Points)
19 July 2022My employer defines an amount as part of the compensation package and the individual employees can define various heads under which this bigger amount is to be apportioned into. I have specified certain amount as contribution to NPS under 80CCD(2). This amount has exceeded the 10% of the salary. I understand this amount is technically a contribution made by the employer. Is it valid to consider the excess as taxpayer's contribution under 80CCD(1B)?
Thanks.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(161021 Points)
Replied 19 July 2022
No. The condition for deduction is:: it should be employee's contribution.
Suresh Kumar Ramasamy
(Software Consultant)
(36 Points)
Replied 19 July 2022
Yes, 80CCD(1B) is for individual taxpayers. I defined the contribution amount under 80CCD(2) with my employer. Had I designed my compensation properly, the amount in excess of 10% of my salary would have come to me (through different head) and then I could have invested under 80CCD(1B). Having missed that, is it okay to file returns with the excess amount under 80CCD(1B)?
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