Ram is a government employee and his employer deducts Rs 75,000 per annum (which is 10% of basic + DA) from salary as employee’s contribution in NPS. It also deposits Rs 75,000 per annum as employer’s contribution in NPS. How and under which section should he claim tax benefit on NPS?
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Sec 80ccd(1), 80ccd(2) & 80ccd(1b)
Replies (3)
Section 80CCD(1)
- Employee contribution up to 10% of basic salary and dearness allowance (DA) up to 1.5 lakh is eligible for tax deduction.
- This contribution along with Sec 80C has 1.5 Lakh investment limit for tax deduction. {with an option to claim it u/s. 80CCD(1b)}
Section 80CCD(2)
- Employer’s contribution up to 10% of basic plus DA is eligible for deduction under this section.
- Employer’s contribution is an additional deduction as it not part of Rs 1.5 lakh allowed under Section 80C.
| Originally posted by : Dhirajlal Rambhia | ||
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Section 80CCD(1) Employee contribution up to 10% of basic salary and dearness allowance (DA) up to 1.5 lakh is eligible for tax deduction. This contribution along with Sec 80C has 1.5 Lakh investment limit for tax deduction. {with an option to claim it u/s. 80CCD(1b)} Section 80CCD(2) Employer’s contribution up to 10% of basic plus DA is eligible for deduction under this section. Employer’s contribution is an additional deduction as it not part of Rs 1.5 lakh allowed under Section 80C. |
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sir
amit is invested Rs. 150000/- in mutual fund (Tax Saver), now he is claim Rs. 50000/- in sec 80ccd(1B).
Yes, He is eligible........
(provided conditions of Amit & Ram be same !!)
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