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Availing Exemptions under 80CCD

You don't need to exhaust your Section 80C investments to avail NPS exemptions under Section 80CCD

The newly introduced sec 80 CCD in the Budget says that income tax exemption of ₹50,000 will be given to individuals over and above the limit of ₹1,50,000 in sec 80C, for investments in the NPS. If someone exhausts the 80C limit of ₹1.5 lakh in PPF, EPF, insurance and ELSS and invests only ₹50,000 in NPS, does he qualify for the 80CCD benefit? Or does one have to invest ₹150000 and ₹50000 in NPS to claim benefit of sec 80CCD?
- A. Kumar

No, that's not true. Even if you exhaust your section 80C limit on other investments and invest only ₹50,000 in NPS, you will be able to avail exemptions for this sum under section 80CCD.

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