• Section 80ccd(1b) of income tax

My son works in a Mutinational Company .He contributes Rs 150000 under Section 80C in PPF,PF,LIC etc etc.A new section 80CCD(1B) has been introduced which enables a person to contribute further Rs 50000 to get a total tax savings of Rs 200000
            His company is however not enlisted in PFRDA NPS scheme.My question is whether as an individual he can contribute Rs 50000 to get tax benefit
Asked 3 years ago in Income Tax from Hyderabad, Telangana

In my view, your son can contribute the additional amount of Rs. 50,000/- in National Pension Scheme, which is the notified scheme u/s 80CCD and claim the additional amount of Rs. 50,000/- as deduction u/s 80CCD(1B). The pension schemes operated by the employer need not be used for this purpose.

B Vijaya Kumar
CA, Hyderabad
865 Answers
61 Consultations

5.0 on 5.0

In my view, your son can contribute additional Rs.50000 in National Pension Scheme to get tax benefit.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
107 Consultations

5.0 on 5.0

The section 80ccd(2) does not specify any enlisted employer with PFRDA under NPS scheme and in my opinion any employer can contribute to your NPS account and you can avail deduction u/s 80ccd(2) subject maximum of 10% of salary and maximum allowable is Rs 50,000/-

Vijay N. Kale
CA, Hyderabad
248 Answers
13 Consultations

4.9 on 5.0

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