SECTION 80 CCD: DEDUCTION IN RESPECT OF CONTRIBUTION TO PENSION SCHEME OF CENTRAL GOVERNMENT (NPS)
SECTION 90 CCD (1) : DEDUCTION FOR CONTRIBUTION TO PENSION SCHEME
Deduction is available to individual only ( whether employed or not)
100% of the amount so paid or deposited (self or by employer) as does not exceed-
(a) in the case of an employee, 10% of his salary in the previous year; and
(b) in any other case, 10% of his gross total income in the previous year.
The total deduction under section 80ccd(1) for amount contributed by the employee and self-employed individual shall not exceed rs 150000. The contribution by employer is not included in limit of rs 150000
The contribution made by Central Government/ Employer to NPS under section 80ccd(2) is treated as salary of the employee. Employee shall get deduction for this amount under section 80ccd to the extent of 10% of the salary.
However , as per the section 80cce the aggregate amount of deduction under section 80c, 80ccc and Section 80 ccd(1) shall not exceed 150000. However, the contribution made by the central government or any other employer to a pension scheme under section 80ccd (2) shall be excluded from the limit of 150000 provided under this section and 150000 provide in section 80cce.
for the purpose of this section, "salary" includes dearness allowance, if the terms of employment so provide, but exclude all other allowances and perquisites.
SECTION 80CCD(1B) : ADDITIONAL DEDUCTION FOR CONTRIBUTION TO NOTIFIED PENSION SCHEME NOT COVERED IN SUB-SECTION (1) ABOVE
An assessee referred to in sub-suction (1), shall be allowed a deduction in computation of his total income, whether or not any deduction is allowed under sub-section (1), of the whole of the amount paid or deposited in the previous year in his account under a pension scheme notified or as may be notified by the central government, which shall not exceed fifty thousand rupees.
Provide that no deduction under this sub-section shall be allowed in respect of the amount on which a deduction has been claimed and allowed under sub-section (1).....(Added by finance act, 2015)
Key note : This deduction of rs 50000/- is over and above the limit of rs. 150000/- as restricted under section 80cce.
SECTION 90 CCD (1) : DEDUCTION FOR CONTRIBUTION TO PENSION SCHEME
Deduction is available to individual only ( whether employed or not)
100% of the amount so paid or deposited (self or by employer) as does not exceed-
(a) in the case of an employee, 10% of his salary in the previous year; and
(b) in any other case, 10% of his gross total income in the previous year.
The total deduction under section 80ccd(1) for amount contributed by the employee and self-employed individual shall not exceed rs 150000. The contribution by employer is not included in limit of rs 150000
The contribution made by Central Government/ Employer to NPS under section 80ccd(2) is treated as salary of the employee. Employee shall get deduction for this amount under section 80ccd to the extent of 10% of the salary.
However , as per the section 80cce the aggregate amount of deduction under section 80c, 80ccc and Section 80 ccd(1) shall not exceed 150000. However, the contribution made by the central government or any other employer to a pension scheme under section 80ccd (2) shall be excluded from the limit of 150000 provided under this section and 150000 provide in section 80cce.
for the purpose of this section, "salary" includes dearness allowance, if the terms of employment so provide, but exclude all other allowances and perquisites.
SECTION 80CCD(1B) : ADDITIONAL DEDUCTION FOR CONTRIBUTION TO NOTIFIED PENSION SCHEME NOT COVERED IN SUB-SECTION (1) ABOVE
An assessee referred to in sub-suction (1), shall be allowed a deduction in computation of his total income, whether or not any deduction is allowed under sub-section (1), of the whole of the amount paid or deposited in the previous year in his account under a pension scheme notified or as may be notified by the central government, which shall not exceed fifty thousand rupees.
Provide that no deduction under this sub-section shall be allowed in respect of the amount on which a deduction has been claimed and allowed under sub-section (1).....(Added by finance act, 2015)
Key note : This deduction of rs 50000/- is over and above the limit of rs. 150000/- as restricted under section 80cce.
