Can I claim tax deduction of Rs 2 lakh? | Value Research Contributions to NPS qualify for additional tax deduction of Rs 50,000 under the newly-introduced Section 80CCD(1B)
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Can I claim tax deduction of Rs 2 lakh?

Contributions to NPS qualify for additional tax deduction of Rs 50,000 under the newly-introduced Section 80CCD(1B)

I am a government employee. My employer deducts approximately ₹72,000 per year from my salary as NPS contribution. Since the government gives ₹50,000 extra tax deduction for NPS investment in addition to ₹1.5 lakh under Section 80C, can I invest ₹1.3 lakh under section 80C and claim a total tax deduction of ₹2 lakh in this FY 2015-16?
- Aravind Kaushik

Yes, you can claim a total tax deduction of ₹2 lakh. Contributions to NPS qualify for additional tax deduction of ₹50,000 under the newly-introduced Section 80CCD(1B). This deduction is over and above ₹1.5 lakh allowed under Section 80 C of the Income Tax Act.


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