Ask upto 3 free GST queries and get trusted CA advice with CAclubindia Pro. Subscribe Now!

Query on tax exemption u/s 80ccd for nps tier1 account

Tax queries 512 views 1 replies

Muthu

Private

28 Points Joined July 2015

I have issued a cheque of INR 50, 000 to my POP-SP on 20-Mar-2015 to open a NPS Tier1 account

The amount got debited from my bank account on the next day i.e., 21-Mar-2015

However due to various issues, POP-SP generated my PRAN number only during May’2015 and the units were credited during June’2015

As the amount got debited from my Bank Account during Mar'2015, please clarify if I can avail tax exemption for INR 50,000 during FY 2014-15 (AY 2015-16)

(Or)

As the PRAN Account got generated and Tier1 units credited during May/June'2015 only, I can avail tax exemption for INR 50,000 during FY 2015-16 (AY 2016-17)

Thanks

Replies (1)

CA Suri Kota

Assistant Manager @ EY

955 Points Joined November 2007

Hi,

You can not claim the exemption in FY14/15. The logic is in your query. Tax officer look at the actual date of allocation of units rather than the time you actually paid for.

You are not officialy declared as invested in Pension scheme unless you get the unique number. So you can claim the benefit only in FY 15/16.