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Sec80ccd

vishak (accounts) (488 Points)

13 December 2015

sir I need know about sec 80CCD ? who can avail benefit of this sec ? what is major change in at 2016-17 ?

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9 Replies

Ankit Taprania (CA FINAL ) (542 Points)
Replied 13 December 2015

This is a deduction for contribution to NPS of central govt. any person whether in individual capacity or in employee capacity can avail benefit . Limit -80CCD(1)-10% of GTI (individual capacity) or 10% of salary in employee capacity .80CCD(1) is restricted to limit of 1.5 Lakh of 80CCE. 80CCD(2)- where contribution made by employer - 10% of salary . THIS IS NOT GOVERNED BY LIMIT OF 80CCE. amandment : new provision 80CCD(1B) is introduced in which additional deduction upto rs 50000 of amount paid by individual under NPS is avilable . NOTED THIS IS NOT GOVERNED BY 150000 LIMIT OF 80CCE. Thus emplyee should give first preference to 80CCD(1B) over 80CCD(1). Example: suppose an employee has paid rs 120000 in NPS then now he can claim 50000 in 80CCCD(1B) and balance in 80CCD(1) on which both restriction of 10% and 150000 applies. Earlier he could only be able to claim 10 % and max to 150000.

vishak (accounts) (488 Points)
Replied 14 December 2015

It Can Be Available All Type of Government Employs ?

vishak (accounts) (488 Points)
Replied 14 December 2015

This diduction is included 150000/- or addition of 150000/-?

Prateek (Partner) (143 Points)
Replied 14 December 2015

This deduction is included in overall limit of deductino under sections 80C, 80CCC and 80CCD.

Ankit Taprania (CA FINAL ) (542 Points)
Replied 14 December 2015

only contribution under 80CCD(1) will be counted for 150000 . Any contribution made in 80CCD(2) and 80CCD(1B) will not counted for 150000. However max contribution in 80CCD(1B) can be 50000 only.deduction is available to not only central employees but to every person you just have to make contribution to NPS .

Jeyaraj Athisayam (UDC) (47 Points)
Replied 12 January 2016

Kindly clarify,

whether contribution by the employer u/s 80CCD(2) has to be counted as income?

if so,

what next?

Ankit Taprania (CA FINAL ) (542 Points)
Replied 12 January 2016

Originally posted by : Jeyaraj Athisayam
	Kindly clarify, whether contribution by the employer u/s 80CCD(2) has to be counted as income? if so, what next?

The entire employer's contribution to notified pension scheme first be added under head " salaries " while calculating GTI , and then deduction u/s 80ccd(2) will be allowed subject to maximum 10% of salaries

example

(a). 80C XXXX

(b). 80CCD(1) XXXX

(c). 80CCCE restricting all above upto 1,50,000

(d). 80CCD(1B) max 50,000

(e). 80CCD(2) actual employer contribution or 10% of salary , which ever is lower

(f). 80D XXXX

TOTAL DEDUCTION (C+D+E+F)