dcps pension

1. A deduction with respect to the Defined Contribution Pension Scheme (DCPS) can be claimed under section 80CCD(1) of income tax act, 1961 of the whole of the amount so paid or deposited as does not exceed,—

       i. in the case of an employees, 10 % of his salary in the previous year; and

       ii. in any other case, 10%  of his gross total income in the previous year (20% w.e.f 01.04.2017)

2. This deduction can be claimed by an individual employed either by the Central Government or, individual employed by any other employer, or any other individual assessee (i.e. Self employed)

3.Maximum amount of Deduction under section 80C, 80CCC and 80CCD(1) will be 150000/-.

4.With effect from 01.04.2016 an additional amount of Rs. 50000/- can be allowed under section 80CCD(1B) (Apart from deduction claimed under section 80C, 80CC and 80CCD).

5. Additional amount of decduction under section 80CCD(1B) is allowed even if no deduction under section 80CCD(1) has been claimed.

6.No deduction with respect to amount already claimed under section 80CCD will be allowed under section 80C.

for more clarification please feel free to write me at g.ujjwala @ gmail.com

Regards,

CA Ujjwala Gupta

 

Dear Madam, I need your advise on 80CCD(1B) deduction. I am a Maharashtra Government employee. Maharashtra Government has not yet converted DCPS into NPS. In this regard, I seek your advise whether I can claim tax deduction under 80CCD(1B) . My Investments are approximately as below for FY 2018-19 DCPS: 88206 LIC: 26539 PPF: 85500 --------------------------- TOT : 200245 With Regards JITENDRA PATIL AMALNER (MAHARASHTRA)

Hello Jitendra Patil Sir,

As it is specifically mentioned that under section 80CCD (1B) that "Contribution to NPS" is eligible for additional deduction of Rs. 50000 Over and above deduction of Rs. 150000 U/s 80C.

Hence The additional deduction of Rs. 50,000/- is available only for contributions made to NPS Tier 1 accounts and not other accounts.

Even Tier 2 accounts are not eligible to claim the deduction under Section 80CCD(1B)

Therefore Contribution made to DCPS is not eligible for dediction U/s 80CCD (1B).