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Section 80CCD

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DEEPANSH JAIN

30 Points Joined June 2017

Assessee has made following expenditure
80C - 77,994
80CCC - 15,820
80CCD(1) - 62,138

now if he contribute further 40,000 in Pension scheme of central government.
Will he be eligible to claim deduction u/s 80CCD(1B) ?

Replies (3)

Deepak Gupta

CA Student

15927 Points Joined May 2011

80CCE: Limit on deductions u/s 80C, 80CCC & 80CCD(1): Agregate amount of 1.50 lakh

So, as per given amounts, it comes to 1,55,952. So, it will be restricted to 1.5 lakh

Further, 80CCD(1B) is additional deduction of upto 50k for deposit in NPS A/c (Tier-I), irrespective of 80CCD(1) and it is not subject to 80CCE Hence, he can claim 40k.

Therefore, total deduction would be 1.5 lakh + 40k = 1.90 lakh