Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

National Pension Scheme and 80c Exemption

451 views

Save Share

Join Us Follow Us Add as Source

Balaji Subbu

SAP FICO

152 Points Posted on 24 February 2021

HI Professional Friends

My 80C total investment is Rs 1 Lakh. Will I invest Rs 50,000 in NPS Tier 1 (National Pension Scheme) and further extra another Rs50,000 also will I invest in NPS?

If so shallI get exemption Rs 2Laks? (1.5L under 80C and another Rs50K under 80CCD)

Is this right understanding?

Please clarify

Adv Thanks

Balaji Subbu

Replies (4)

Quick Summary

This discussion clarifies how investments in the National Pension Scheme (NPS) Tier 1 can maximise tax benefits. By investing Rs 1 Lakh in NPS Tier 1, individuals can claim a deduction of Rs 1.5 Lakhs under Section 80C, 80CCC, and 80CCD(1). Furthermore, an additional Rs 50,000 deduction is available under Section 80CCD(1B), potentially bringing the total tax exemption to Rs 2 Lakhs.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 24 February 2021

No, you will get 150000 rupees in total aggregate of 80c, 80ccc, 80cccd

SUSHANT BIDAYE

482 Points Posted on 24 February 2021

You will get deduction if 200000 as rightly asked in question itself in my view

Josh

Manager

104 Points Posted on 24 February 2021

You will get aggregate 1.5 lakh deduction for investments made in 80 C, 80CCC and 80 CCD (1) (i.e. as employee) plus additional 50k deduction if you invest under 80 CCD (1B). Pls. ensure that the additional investment (50k) you make is covered under this section.