Questions on NPS Contribution (Tier 1)

Let it be self contribution through employer or voluntary by yourself, max limit is 50k under 80CCD(1B) and if you exhaust 50k limit, then additional deduction can be taken under 80CCD(1) within regular 1.5L limit.

NPS contribution via employer comes under 80CCD(2)

10% of basic is allowed, 

Own contribution has upper limit of 50K under 80CCD(1B)

7H4NO5 wrote:

Let it be self contribution through employer or voluntary by yourself, max limit is 50k under 80CCD(1B) and if you exhaust 50k limit, then additional deduction can be taken under 80CCD(1) within regular 1.5L limit.

With 1.5 means the one that is part of 80c?

rak007 wrote:
With 1.5 means the one that is part of 80c?

Yes part of 80c

Vote for ops in 2024 😄

Sudarshan61 wrote:

NPS contribution via employer comes under 80CCD(2)

10% of basic is allowed, 

Own contribution has upper limit of 50K under 80CCD(1B)

only accurate comment

I read somewhere that we can claim tax deduction under 80ccd1 only if we invest a minimum of Rs 6000 in a year. Is that true?

noobDealer wrote:
only accurate comment

OP is asking about self contribution and the comment is about employer's contribution

You can avail 1.5L under 80C, 0.5L under 80CCD(1B) and 10% of basic under 80CCD(2). It would 2L+

ConfirmPassword wrote:

You can avail 1.5L under 80C, 0.5L under 80CCD(1B) and 10% of basic under 80CCD(2). It would 2L+

Any source for this information?

saurabh1090 wrote:

Any source for this information?

Income tax act, 1961

ConfirmPassword wrote:
Income tax act, 1961

Suppose i invest 1.5 lac in Sec 80 C, 50 K in NPS , total exception is 2 lac. Now if we contribute additional 1 lac through employer in NPS will.me exception amount become 3 lac ?

saurabh1090 wrote:

Suppose i invest 1.5 lac in Sec 80 C, 50 K in NPS , total exception is 2 lac. Now if we contribute additional 1 lac through employer in NPS will.me exception amount become 3 lac ?

Exact same question.

saurabh1090 wrote:

Suppose i invest 1.5 lac in Sec 80 C, 50 K in NPS , total exception is 2 lac. Now if we contribute additional 1 lac through employer in NPS will.me exception amount become 3 lac ?

Yes, you can. But, is your basic around 10lakhs (basic pay only)? If yes, then it can be claimed.

No limitation in employer contribution.

ConfirmPassword wrote:

Yes, you can. But, is your basic around 10lakhs (basic pay only)? If yes, then it can be claimed.

No limitation in employer contribution.

Can you clarify here...

Say I contribute 1.5L for 80c
I contribute 55K through employer (assuming basic as 550000)

Now I understand I can claim exemption for the 55K as it is through employer.

Now say additionally I decided to contribute 1L more out of my pocket as "Voluntary Contribution" then can I claim this 1L I contributed?

rak007 wrote:
Can you clarify here...

Say I contribute 1.5L for 80c
I contribute 55K through employer (assuming basic as 550000)

Now I understand I can claim exemption for the 55K as it is through employer.

Now say additionally I decided to contribute 1L more out of my pocket as "Voluntary Contribution" then can I claim this 1L I contributed?

for you additional voluntary contribution of 1 lakh, you can claim upto 50K only under 80CCD(1B).

So, your total deduction will be,

1.5L under 80C
55k under 80CCD(2) (employer contribution)
50k under 80CCD(1B) (employee contribution)

ConfirmPassword wrote:
for you additional voluntary contribution of 1 lakh, you can claim upto 50K only under 80CCD(1B).

So, your total deduction will be,

1.5L under 80C
55k under 80CCD(2) (employer contribution)
50k under 80CCD(1B) (employee contribution)

Thanks , this clarifies ...