Can Non-Govt employee invest in NPS & claim deduction?

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  1. Sunil Tyagi

    Sunil Tyagi New Member

    The finance minister in his speech had announced additional limit of RS. 50,000/- under section 80 CCD.

    I have two doubts if some one on forum could clarify:

    1. Is this over and above limit of RS 1.5 lac under sec 80 C ?

    2. In case it is. Then does that mean I can open a new NPS account invest Rs. 50,000/- and claim tax relief. I am not a govt employee and not opened. NPS account before.
  2. Shishir Nayak

    Shishir Nayak Member

    1. Yes It is over and above limit of RS 1.5 lac under sec 80 C.
    2. Yes you can open new NPS account in any bank given under

    List of Pension Fund Managers

    • ICICI Prudential Life Insurance Company Limited
    • IDFC Asset Management Asset Management Company Limited
    • Kotak Mahindra Asset Management Company Limited
    • Reliance Capital Asset Management Company Limited
    • SBI Pension Funds Limited
    • UTI Retirement Solutions Limited

    Various Points of Presence have been constituted, which act as a customer interface for investors. You may chose from the below mentioned list to open your account.

    List of Points of Presence (PoP)*
    • Allahabad Bank
    • Axis Bank Ltd.
    • Bajaj Allianz General Insurance Co Ltd.
    • Central Bank of India Citibank N.A.
    • Computer Age Management Services Private Ltd.
    • ICICI Bank Ltd.
    • IDBI Bank Ltd.
    • IL&FS Securities Services Ltd.
    • Kotak Mahindra Bank Ltd.
    • Life Insurance Corporation of India Oriental Bank of Commerce Reliance Capital Ltd.
    • State Bank of Bikaner & Jaipur State Bank of Hyderabad
    • State Bank of India
    • State Bank of Indore
    • State Bank of Mysore
    • State Bank of Patiala
    • State Bank of Travancore
    • The South Indian Bank Ltd.
    • Union Bank of India
    • UTI Asset Management Company Ltd.
    Sunil Tyagi and Parul_Gupta like this.
  3. Sunil Tyagi

    Sunil Tyagi New Member

    Thank you Mr Naik for your reply.
    I know that I can open an NPS account but will I get tax benifit by just investing Rs 50000/-.
  4. Shishir Nayak

    Shishir Nayak Member

    Budget 2015 says - an additional deduction in respect of any amount paid, of upto fifty thousand rupees for contributions made by any individual assessees under the NPS.

    This Means if you invest Rs 50000 or more also you ll get deduction of rs 50000 and if you invest less than Rs 50000 than you will get deduction the amount you have invested.
    Girish KN and Sunil Tyagi like this.
  5. Sunil Tyagi

    Sunil Tyagi New Member

    That's great news. I am sorry to misspell your name incorrectly in my previous post. Apologies.
  6. Shishir Nayak

    Shishir Nayak Member

    No problem
  7. rumameenakshi

    rumameenakshi New Member

    In Schedule VI A (ITR 2), if I put under 80 ccd (1) say 50,000/- I am not getting an automatic deduction in system calculated cell. What should I do?
  8. Sunil Tyagi

    Sunil Tyagi New Member

    I think sec 80ccd is included in 1.5 lac limit of Sec 80c. However, some chartered accountant can answer this better.
  9. Karan Batra

    Karan Batra Well-Known Member

    Additional Deduction of Rs. 50,000 for Investment under Section 80CCD which is over and above Deduction under Section 80C is applicable from Financial Year 2015-16

    For financial year 2014-15, the combined deduction for Investment under Section 80CCD + 80C is Rs. 1.5 Lakhs only
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