Tax Confusing with 80ccd(1) amount adjust/split with 80ccd(1b)

Kuldeep Singh (152 Points)

26 August 2021  


Can we spilt NPS employer-end contribution section 80ccd(1) amount in two parts as one for section 80c and second for section 80ccd(1b) ?

I am state government employee and having PPF saving of 1,30,000 under section 80C and my employee-end NPS contribution(80ccd(1)) is 70,000. Can i split/adjust 80ccd(1) amount into two parts as given below scenerio:

1. 80CCE = PPF (Rs 1,30,000) + 80ccd(1)(Rs 20,000) = 1,50,000

2. 80ccd(1b) = Rs 50,000 (remaining amount of  80ccd(1)).

As per Section 80CCE, the aggregate amount of deduction under sections 80C, 80CCC and Section 80CCD(1) cannot exceed Rs.1. 5 lakh.

Our state government not accepting this scenario and saying that you can not split/adjust section 80ccd(1) amount with section 80ccd(1b) amount. If anybody knows exact rule plz share authentic proof.