nps related

Others 213 views 2 replies

amit kumar

26 Points Posted on 19 January 2019

My self is State government employee and my employer had deducted my contribution of 10 % salary and deposited in NPS.

My question is that.

If I complete my 80c,80ccd tax saving deducted of Rs1.5 lac by INVESTING through (PPF, MF, LIFE INSURANCE, NSC) and some part of NPS to fulfill the 1.5 lac limit but by doing this still my some amount of NPS remaining which my employer was deducted on behalf of myself through salary.

some such remaining amount can I be claimed against sec 80ccd1b of additional 50000 saving.

Please guide....as same is not so clear and found any where..

Replies (2)

Nitesh bind

Student CA Final

12692 Points Posted on 19 January 2019

* Deduction u/s 80CCD:

There is a further classification of this particular Section.

Section 80CCD(1)

Eligible Assessee: Individual Only (whether Employed or Not).

Deduction for: Payment towards the NPS Pension Account.

Max. Deduction: 10% of Salary (Basic+DA only) /20% of GTI (in case of Self Employed) [but deduction allowed in combination with 80C]

[Imp. Note- The AGGREGATE of Deductions u/s 80C, 80CCC, 80CCD(1) shall not exceed Rs. 1,50,000]

Section 80CCD(1B)

Eligible Assessee: Individual Only (whether Employed or Not).

Deduction For: Payment toward the NPS Account made by the Employee/Self Employed person can be diverted to this section when 80CCD(1) limit has exhausted

Max. Deduction: Rs. 50,000 - THIS IS AN ADDITIONAL DEDUCTION i.e. allowed without combining with 80C.

Section 80CCD(2)

Eligible Assessee: Individual Only (must be Employed)

Deduction For: Employer contribution towards the NPS account of Employee.

Max. Deduction: 10% of Salary (Basic+DA only) - THIS IS AN ADDITIONAL DEDUCTION i.e. allowed without combining with 80C

If still not clarified please revert. Thanks