If you invest Rs 50,000 in NPS, you claim deduction for only that amount. One can't claim triple deductions
17-Aug-2015 •Research Desk
I have some doubts on NPS and need your help to clarify about this triple benefit. My NPS account is corporate model. My company is deducting ₹50,000 from my salary and showing this amount as business purpose under 80CCD2.(This is my first benefit) I want to show the same amount 50,000 under 80CCD1. This is second benefit to me. As per the last budget, I am eligible for 2 lakhs benefit under 80C. I will show this amount as additional benefit under this NPS. Please clarify if my triple benefit assumption is correct.
- Yugandhar Nalabolu
You triple tax break theory is wrong. If you invest ₹50,000 in NPS, you claim deduction for only that amount. You can't claim triple deductions on that money. You have to make extra investment of ₹50,000 if you want to claim the additional tax benefit announced in the last budget.