VR Logo

Claiming deductions on NPS contributions

Your contribution to National Pension Scheme (NPS) is covered under Section 80CCD(1)

I changed my company during this financial year. My last company had National Pension Scheme (NPS) and I availed Section 80CCD2 benefits. My present company does not have NPS scheme. I contributed myself ₹50,000 to NPS. Will this qualify for 80CCD(2B)? Note, it all happened in this financial year. Also, are these benefts (80CCD2 and 80CCD2B) included under Section 80C relief?
- Aurobindo Saha

You got the sections wrong. Your contribution to National Pension Scheme (NPS) is covered under Section 80CCD(1). Your employer's contribution is covered under Section 80CCD(2). The extra deduction on NPS is covered under Section 80CCD(1B). You can claim a total deduction of ₹1.5 lakh under Section 80C, Section 80CCC, Section 80CCD(1) and ₹50,000 under Section 80CCD (1B). In short, you can claim a total deduction of ₹2 lakh under Section 80C and Section 80CCD.

Post Your Query