Additional Deduction U/S 80CCD(1B) for NPS

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  1. Rifat Aziz

    Rifat Aziz New Member

    For FY 2014-15 (assessment year 2015-16)
    Total Deduction under Section 80C, 80CCC and 80CCD(1) cannot exceed Rs 1,50,000.

    For FY 2015-16 (assessment year 2016-17)
    A new section 80CCD(1B) has been introduced to provide for additional deduction for amount contributed to NPS of up to Rs 50,000.

    Therefore for financial year 2015-16, Total Deduction under Section 80C, 80CCC, 80CCD(1) and 80 CCD(1B) cannot exceed Rs 2,00,000.

    My Query is
    Can a person claim deduction for amount in NPS both under Section 80CCD(1) and as well as Section 80CCD(1B) against the limits of Rs 1.5 lakh and Rs 50,000; Total Deduction being Rs 2 lakh.
    E.g: If a person has total savings of Rs 1,30,000 (policies, NSC, etc) and Rs 80,000 in NPS (Employee Share). Can he claim deduction of Rs 1.5 lakh (Rs 1.3 lakh and Rs 20,000 from NPS) U/S 80C, 80CCC and 80CCD(1) and additional Deduction of Rs 50,000 in NPS U/S 80CCD(1B). Total Deduction of Rs 2 lakh.
     
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