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By depositing Rs. 2, 00,000/- in NPS, whether entire amount can be claimed as deduction under Chapter VI-A
I have been contributing Rs 50,000/- per year in NPS Tier 1 Account to claim tax benefit under sec 80CCD (1B) since March 2016. My Tier 2 account was never active Can I now start contributing (as I m retired now)additional Rs 1,50,000/- in same Tier 1 Account to get benefit of sec 80C/80CCD(1) by paying entire Rs 2,00,000/- in one stroke? Please clarify.
Yes, by depositing Rs. 2, 00,000/- , in NPS Tier-1 account, you can claim-
- Deduction up to Rs 1,50,000/- u/s 80CCD(1)
- Addition deduction up to Rs 1,50,000/- u/s 80CCD(1B)
- The maximum limit of deduction available under Section 80CCD is Rs. 1,50,000/-
- However, new amendment to the Section 80CCD has been done by the Union budget 2015 as sub-section 1B. Under the new section 80CCD, individuals can claim an additional deduction of Rs. 50,000/-.
- This has thereby raised the maximum deduction available under Section 80CCD to Rs. 2, 00,000/-.4.
- Tax benefits under Section 80CCD (1B) can be claimed over and above the deductions available under Section 80CCD (1).5.
- The maximum limit of deduction available under Section 80CCD is Rs. 2,00,000/-; this includes the additional deduction of Rs. 50,000/- available under sub-section 1B.6.
- Tax benefits availed under Section 80CCD cannot be claimed again under Section 80C, i.e. the combined deduction under Section 80C and 80CCD cannot exceed Rs. 2,00,000/-