My contribution to NPS (10 of Basic DA) is ₹77,000. My PPF savings, children tuition fees and other savings under Section 80C totals up to ₹1 lakh. Now my question is whether the whole ₹1.77 lakh can be waived under 80C, 8CCD1 and 80CCD(1b) or only ₹1.5 is allowed. For getting additional rebate in NPS, is there a need to invest ₹50,000 apart from what I have contributed?
- Kalichamy Alagarasu
The total deduction permitted under both Section 80C and Section 80CCD is ₹2 lakh. That means you can claim a tax deduction of ₹1.77 lakh with your existing investments. You also have the option of investing an additional ₹23,000 to exhaust the total tax deduction available to you.