Tax rebate for pension contribution

Dear Sir,

Yes, you can claim NPS deduction while filing ITR.

There is a deduction of up to Rs. 1.5 lakhs to be claimed for NPS – for your contribution as well as for the contribution of the employer.

– 80CCD(1) covers the self-contribution, which is a part of Section 80C. The maximum deduction one can claim under 80CCD(1) is 10% of the salary, but no more than the said limit. For the self-employed taxpayer, this limit is 20% of the gross income.

– 80CCD(2) covers the employer’s NPS contribution, which will not form a part of Section 80C. This benefit is not available for self-employed taxpayers. The maximum amount eligible for deduction will be lowest of the below: a. Actual NPS contribution by employer b. 10% of Basic + DA c. Gross total income

– You can claim any additional self contribution (up to Rs 50,000) under section 80CCD(1B) as NPS tax benefit.

The scheme, therefore, allows a tax deduction of up to Rs 2 lakh in total.

A salaried employee can deposit upto 10% of salary and a self employed person can deposit upto 20% of total income and can get deduction of maximum upto 1.5 lakh and then can even get addition deduction of 50000 under 80CCD(2) if 1.5 limit is exhaust.

Its not necessary that employer makes a contribution but the contribution should be made to recognised pension fund and from your question its not clear whether you have made contribution to recognised pension fund i.e. pension fund set up by government or pension fund set up parent company.

You can claim deduction of earlier years only by filing a rectification for FY 2017-18 and for FY 2018-19 you can file a revise return if same was not claimed in original return.

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

Thank you.

Hello,

Since you are employed with the Government, the deduction for pension contributions will be available, if within specified limits.

I hope that this answer satisfies your requirement.

Regards,

CA Hunny Badlani

For F.Y. 2018-19, you will have to revise your return. F.Y. 2017-18, timelimit for revision is over.

As far as tax is concerned I don't think it will be allowed as deduction.

Employee's contribution towards recognized pension fund is allowed as deduction. You need to check if it is within specified deduction limits.

Dear Sir,

If it is not a recognized pension fund, you will not be able to claim any deduction.

- Deduction is only available when payment is made to pension fund.

Hi,

Unfortunately the payment made by you to your parent organisation for pension will not qualify for deduction/ rebate under IT act.

There is no such provision.