• Regarding 80 CCD(1) and NPS

I am a Government Employee. I have a home loan whose principal amount deducted for 2019-20 is Rs 181690, saving in NPS is Rs 67160 and LIC is Rs 19614. As the total saving under section 80 C is more than Rs 150000, so can I show Rs 50,000 of NPS under section 80CCD1(b) and the rest amount in 80C
Asked 1 month ago in Income Tax from NEW DELHI, Delhi

Dear Sir,

 

Hope you are doing well !!

 

Your contribution to NPS can be claimed under Section 80CCD1(b)as well as Section 80C. So If you have can use other investments to claim 1.5 lakh deduction under 80C then you can claim your NPS contribution first under 80CCD1(b) for 50,000 then remaining along with other investments under 80C for Rs 1.5 lakh.

So the total deduction you can claim is Rs 2 lakh.

Payal Chhajed
CA, Mumbai
2853 Answers
39 Consultations

5.0 on 5.0

Hello Sir,

 

Section 80CCD of the income tax act deals with deductions offered to individuals contributing to the NPS.

 

An additional deduction of up to Rs. 50,000/-for contributions made by individual taxpayers towards the NPS.

 

The additional deduction of Rs. 50,000/- under Section 80CCD(1B) is available to assess over and above the benefit of Rs. 1.50 Lakhs available as a deduction under Sec 80CCD(1). Thereby, raising the maximum limit of exemption to Rs. 2.00 Lakhs with Section 80CCD(1) + Section 80CCD(1B).

 

Yes, you can Rs 50,000 of NPS under section 80CCD1(b)-Individual contribution and the rest amount in 80C.

Karishma Chhajer
CA, Jodhpur
1286 Answers
7 Consultations

5.0 on 5.0

Sir if your saving is eligible for 80CCD1(b)

then you can only show it to their otherwise not

Vishal Khandelwal
CA, JAIPUR
23 Answers

Not rated

Hello Sir/Madam,

 

you have to show NPS under 67160 and avail deduction of Rs. 50000, as your 80C already full then why you want to show rest in 80C.

  

Lalit Bansal
CA, Delhi
637 Answers
41 Consultations

5.0 on 5.0

Hello,

 

Yes, you must declare NPS Rs. 67,160 u/s. 80CCD(1B) to claim full deduction up to Rs. 2,00,000.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Neemuch
794 Answers
1 Consultation

5.0 on 5.0

If you employer is contributing to your NPS account you can claim deduction under section 80CCD(2).

 

There is no monetary limit on how much you can claim, but it should not exceed 10% of your salary.

 

 

Payal Chhajed
CA, Mumbai
2853 Answers
39 Consultations

5.0 on 5.0

Hello Sir,

 

Contribution from the employer up to 10% of Basic Salary + Dearness Allowance is also eligible for deduction under Section 80CCD(2). 

Employer’s contribution up to 10% of basic plus DA is eligible for deduction under this section above the Rs 1.5 lakh limit in Sec 80CCD(1).

Karishma Chhajer
CA, Jodhpur
1286 Answers
7 Consultations

5.0 on 5.0

No sir

you can only eligible for total 150000 

Vishal Khandelwal
CA, JAIPUR
23 Answers

Not rated

Yes you will get the deduction under 80CCD(1B) even if its paid out of salary as there is no requirement that payment needs to be made by you.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
1981 Answers
17 Consultations

5.0 on 5.0

The deduction is available.

Hunny Badlani
CA, Neemuch
794 Answers
1 Consultation

5.0 on 5.0

No, you can not claim u/s 80CCD1(b). It is a part of overall limit of Rs.1,50,000.

Vivek Kumar Arora
CA, Delhi
2942 Answers
144 Consultations

5.0 on 5.0

Hi

 

You need to claim deduction under section 80CCD (2).

This is the deduction for contribution by employer. 

Section 80CCD (2) allows salaried individuals to claim deductions up to 10% of their salary which includes the basic pay and dearness allowance or is equal to the contributions made by the employer towards the NPS.

 

So, claim entire NPS under 80CCD(2) provided 10% Condition is satisfied.

Lakshita Bhandari
CA, Mumbai
3545 Answers
174 Consultations

5.0 on 5.0

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