Section 80ccd
Basic salary of mr A is ₹20000 pm . He is entitled to dearness allowance which is 40% of basic salary. 50% of dearness allowance form part of pay for retirement benefit. Both mr A & his employer contribute 15% of basic salary to the person scheme referred to in section 80CCD. Explain tax treatment in respect of such contribution in the hand of MR A. please answer this question I am confusing in this question. I m getting diff answer from book
Replies (1)
Basic 20000 + DA forming part of retirement benefit 20000*40%*50% = 4000
Total = 24000
Max eligible deduction for A' contribution = 24000*10% = 2400*12 = 28800 p.a Contribution restricted to 10%
Max Eligible deductiin for Employers contribution = 24000*15%*12=43200
There is no limit for deduction in respect of employers contribution. Employees contributionis eligible for deduction upto 10% only
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