I am an employee of Tamil Nadu state government. I want to know whether I am eligible for ₹50,000 extra tax exemption under Section 80CCD(1B) over and above the limit of ₹1.5 lakh allowed under Section 80C. Here treasuries are not accepting money for the extra deduction. Why?
- Rajesh Kumar
You are eligible for an extra deduction of ₹50,000 for contributions to National Pension Scheme (NPS) under Section 80CCD(1B). The total tax deduction one can claim under both Section 80C and 80CCD is ₹2 lakh for the financial year 2015-16.
We really won't be able to comment why the treasury department is not accepting your contributions.