query related

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amit kumar

26 Points Posted on 01 April 2019

If a person working in State government services he want to maximize his saving by inverst and declear ITR in fashion.

Can he claim the deduction of NPS amount under 80cc2b if the same is deducted from salary by employer.

i.e
if he wants to save 2lac and declear his saving in such a manner

for 1.5lac as a 80C limit by ( he invest
60000 by ELSS MF,
40000 by LIC,
20000 by PPF

Employer has deducted total Rs.86000 from salary and deposit NPS tier-1 account.

So he split NPS amount in (50000+ 86000) and used part of Rs36000 in 80C
RS 50000 in 80CC2B
for total savings of 2 lac.

Please comments if possible with ITR rules and reference is given any Where???

Replies (2)

Mukesh Sodhi

owner

286 Points Posted on 01 April 2019

Though it is possible to get the deduction of employee's contribution in either of the section, be 80C or 80CCD(b1), and not simultaneously in both; but DDO/s have no such instructions. So, without proper guidance available to them its difficult to convince them.

Well, by filing ITR, assesses can claim the deductions.

Neha Pahuja

127 Points Posted on 01 April 2019

Claim deduction for Employees Contribution as per below Section:-
80C - 120000
80CCD(1)- 30000
80CCD(1A)-50000

Employers Contribution to NPS is allowable as deduction under section 80CCD(2)...this deduction will be over and above 200000 above....provided employers contribution should not exceed 10% of Basic Salary and DA..