I am a 32-year-old central government employee covered under NPS pension rule. Till now (FY 2014-15) I have claimed deduction of my entire contribution of around ₹80,000 under 80CCD1 within the section 80CCE limit of 1.5 lac. For FY 2015-2016, my estimated new pension scheme contribution (compulsory 10% of basic) is around ₹87,000, excluding government contribution. My question is weather I can claim this amount under new proposed 80CCD(1B) in the last budget. If yes, weather I can claim 50,000 (maximum permitted amount) under 80CCD1B and the remaining unclaimed ₹37000 in 80CCD1. Clarify my doubt so that i can plan my tax saving investment accordingly for the remaining ₹1,13,000.
- Dr. U. Senthil Kumaran
Yes, you can go ahead with your tax planning. Section 80C and 80CCD1B together allows you to invest up to ₹2 lakh and claim tax deductions. It is up to you to decide how you want to make those investments. It is just an accounting exercise as there are no preconditions attached to these sections.
This article was originally published on August 06, 2015.
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