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Section 80CCD

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DEEPANSH JAIN

30 Points Posted on 19 September 2020

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)

Quick Summary

This discussion clarifies eligibility for the Section 80CCD(1B) deduction, which allows an additional claim of up to £50,000 for contributions to the National Pension System (NPS) Tier-I account. Even if your 80C, 80CCC, and 80CCD(1) deductions have reached the £1.5 lakh limit under Section 80CCE, you can still claim this extra £50,000. This means a total deduction of up to £2 lakh is possible.

Deepak Gupta

CA Student

15932 Points Posted on 19 September 2020

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