DEDUCTION UNDER SECTION 80CCC
Deduction in respect of contribution to certain pension funds.
As per section 80CCC, where an assessee being an individual has in the previous year paid or deposited any amount out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the Fund referred to in clause (23AAB) of section 10, he shall, in accordance with, and subject to the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessee’s account, if any) as does not exceed the amount of one lakh rupees in the previous year.
Where any amount paid or deposited by the assessee has been taken into account for the purposes of section 80CCC, a rebate/ deduction with reference to such amount shall not be allowed under section 88 up to assessment year 2005-06 and under section 80C from assessment year 2006-07 onwards.
Limit- Deduction shall exclude interest or bonus accrued or credited to the employee’s account, if any and shall not exceed Rs. 1 lakh and The aggregate amount of deduction under sections 80C, 80CCC and sub section (1) of Section 80CCD shall not exceed Rs.1,50,000/- (Section 80CCE). Please note that Limit of deduction Under section 80CCC is enhanced to Rs. 1.50 from One Lakh with effect from assessment year 2016-17 and for subsequent assessment years. Limit of deduction under 80CCC raised to Rs. 1.50 Lakh
DEDUCTION UNDER SECTION 80CCD
Deduction in respect of contribution to pension scheme of Central Government.
Section 80CCD(1) allows an employee, being an individual employed by the Central Government or by any other employer on or after 01.01.2004, or any other assessee being an individual, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified vide Notification No. F.N. 5/7/2003- ECB&PR dated 22.12.2003 (National Pension System –NPS) or as may be notified by the Central Government.
As per Section 80CCD(2), where any contribution in the said pension scheme is made by the Central Government or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by the Central Government or any other employer subject to limit of 10% of his salary of the previous year.
Section 80CCE provides that the aggregate amount of deductions under section 80C, section 80CCC and section 80CCD shall not, in any case, exceed Rs. 1,50,000
With effect from assessment year 2015-16, amended sub-section (1) has clarified that a non-government employee can claim deduction under section 80CCD even if his date of joining is prior to January 1, 2004.
With effect from the assessment year 2012-13 section 80CCE is amended so as to provide that contribution made by the Central Government or any other employer to a pension scheme under sub-section (2) of section 80CCD shall not be included in the limit of deduction of Rs. 1,50,000 provided under section 80CCE.
With effect from assessment year 2016-17, sub-section (1A) of Section 80CCD which laid down maximum deduction limit of Rs. 1,00,000 (under sub-section (1)) has been deleted.
Further, a new sub-section (1B) is inserted to provide for additional deduction to the extent of Rs. 50,000. The additional deduction is not subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE.
However, it is to be noted that addition deduction of Rs. 50,000 shall not be allowed in respect of contribution which is considered for deduction under Section 80CCD(1), i.e., within limit of 10% of salary/gross total income
Any payment from NPS to an employee because of closure or his opting out of the pension scheme is chargeable to tax. However, with effect from the assessment year 2017-18, the whole amount received by the nominee from NPS on death of the assessee shall be exempt from tax.
Please note that In order to provide parity between an individual who is an employee and an individual who is self-employed, section 80CCD is amended with effect from Financial Year 2017-18 so as to increase the upper limit of ten per cent of gross total income to twenty per cent in case of individual other than employee. Budget 2017: Section 80CCD limit for self-employed individual increased to 20%
Also Read- Sec. 80CCD- Additional deduction for National Pension System contribution.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
(Republished with Amendments)
Author Bio
I HAVE INVESTED RS750000/- IN VARISHTHA PENSION BIMA YOJANA 2017 DURING THIS FINANCIAL YEAR. CAN I DEDUCT ANY AMOUNT FROM MY INCOME WHICH WILL BE OTHER THAN 80C
If amount has been paid to keep in force a contract for any annuity plan of life insurance corporation or other insurer for receiving pension from the fund but did not cliam any deduction on such payment under section 80ccc of income tax act then the amount received on surrender of this anuuity plan shall not be deemed to be income of assessee and will npot be taxable . is this right ? as per 80ccc(2)
sir good noon . If I have two house loan than can I take the benifit of booth home loan in income tax plz tell me
Thanks for sharing, your article is very helpful..!!
I have invested 80000 rupees u/s 80C which has been already indicated in form 16 issued by the employer. Now I have another 70000 rupees invested u/s 80C for which I have valid receipts. I have claimed exemption of Rs.1,50,000 u/s 80C while submitting my IT returns for AY 2017-18. I have notice from IT to agree for inclusion of Rs.1,50,000 to my income and submit revised return or else give reason for disagreement.
How shall I proceed?
Can we claim Tax deduction for amount spent for medical treatment of parents, under hospitalisation, over and above the amount settled under mediclaim policy?
My NPS contribution is Rs. 63000/- And other savings in LIC policy, Tax saver deposits, sukanya samriddhi all total amounting to Rs. 1,10,000/-. Total tax deductible amount is 110000+63000=173000 . we can show Rs. 1,50,000/ as maximum in tax deduction. Now, we can show rest 23000 in 80 CCD 1(B). That means, 80C and 80 CCD(1)=110000+40000( NPS)=150000. Rest 23000 in 80CCD 1(B). Can I do this. Is it correct in the income tax guidelines. – See more at: https://taxguru.in/income-tax/income-tax-deduction-section-80ccc-80ccd-80ccf.html#sthash.0qo2uLiY.dpuf
dear sir,
how to file tax deduction for expenses incurred on dental treatment.
individual claiming deduction u/ s80 ccd for investing in NPS can claim 20% from gross total income , is there any limit for maximum deduction?
Sir,
I am haryana Govt. employee.My employer deduct Rs.25000 contribution in nps &Rs.25000 employer contribution in nps. I have save 150000/- in other schemes.Can i claim (25000+25000) for further saving under sec 80ccd. Whether employer contribution is to be added in my income also or not.
U/S80C Rs. 150000 already invested and additional Rs.50000 where I invest , please informe me
hi i had opened mine and my wife’s Atal Pension Yojana Account. I am salaried and she is housewife. so should i claim premium paid in my wife’s account under section 80 CCD along with mine premium paid.
I m a central govt. Employee. My NPS contribution pertaining to year 2015-16(₹56000), 2005-06(₹13000), 2004-05(₹6000) were not deducted in those relevant years. Total arrear employer contributions are 75000. Current year 2016-17 contribution is 70000(10% of salary). So total NPS employer contributions are 145000 and equal employee contributions. When I claim employer contributions 145000 exemptions under 80ccd2, system accepts only 70000(10%). How should I spread employer contribution under 80 ccd2 over respective years. Form 10 E is not beneficial as
1. It takes taxable income not income and deductions before arriving at taxable income
2. It is mandatorily be filed online and system based. So no place of remarks and explanation.
3. It’s column 7 of table A annex 1, does not take negative value.
Also in view of point 3 above, how should I spread my savings of NPS contribution ₹56000 pertaining to 2015-16, to claim additional ₹50000 exemption under 80 CCD 1 B over limit of savings ₹150000 of f.y. 2015-16.
My this year quota of 200000(₹150000 under80c, 80 ccd1 + ₹50000 under 80 CCD 1b) is already exhausted.
Please guide.
hi , i have invested in atal pension yojna . can i apply for a tax rebate under 80CCD(1B).
Dear Sir,
As I have Rs.1,50,000 declared under 80C and 99000 for House rent and 15000 for Medical treatment. Other than that can I show any amount in any section other than housing loan to reduce the tax amount.Kindly guide me on this please.
I tried to fill quick e-file in incometaxefiling page for AY 2016-17 and I filled the amount under 80ccc from which it has accepted 150000 for deduction but when i enter 50000 in 80ccd1 as nps tier I contribution it is not accepting it so how can one take maximum rebate for 200000 ?
I have invested 50000 in NPS in FY 2015-16. However this year in budget a provision has been made to deduct 10% of basic towards NPS. Is there an upper limit of 50000 for this amount towards tax free amount? Or is this an additional benefit
I am central govt employee. i want to know whether contribution made under APY for my wife is allowable deduction for me under section 80ccd for Assessment year 2016-17
Hi, Will try to respond to the best of my knowledge. Forget 80C for the moment… Reg NPS contributions, YOUR individual Tier 1 contributions come under 80CCD (1) and this falls within overall limit of 1.5 lacs under 80C. Your employer contributions in total (1.10 lacs) will be included in the 80CCD (2) without any limit provided it is less than or equal to 10 % of your annual Basic+DA. Regarding the other 1.10 lacs you contributed, i am guessing it is NOT additional, but your contributions under Tier 1, If so it would already have been included in 80C limit and so only you can add another 50,000 as deductions under 80CCD (1b)
My NPS contribution is Rs. 63000/- And other savings in LIC policy, Tax saver deposits, sukanya samriddhi all total amounting to Rs. 1,10,000/-. Total tax deductible amount is 110000+63000=173000 . we can show Rs. 1,50,000/ as maximum in tax deduction. Now, we can show rest 23000 in 80 CCD 1(B). That means, 80C and 80 CCD(1)=110000+40000( NPS)=150000. Rest 23000 in 80CCD 1(B). Can I do this. Is it correct in the income tax guidelines.
i am state govt. employee from 2000. am i eligible for nps for further 50000 exemption
Dear Sir my investment in PPF and Insurance premium is Rs 150000.00 and my DCPS deduction from salary is 60000.00 for FY 2015-16.So please clarify whether I will get 150000.00 tax benefit or 200000.00 tax benefit.
Sir,
under section 80ccd1b only tier I contribution is covered or tier II contribution also included
I am a government employee and my annual NPS deduction is 120000/- and under 80C saving is approx. 100000/-. I want to know whether may i claim tax exemption on 50000/- of my NPS deduction under 80CCD(1B) and balance of 70000/- of NPS under 80C (upto 150000/-).
Sir I am state govt. Employee. I have nps deduction 42074 and govt. Deposit 42074 too. I can get 50000 additional benefit. Please do clear
K.S.VANISHREE
I AM AN ASST. PROF. IN GOVT. FIRST GRADE COLLEGE.MY CONTRIBUTION U/S 80(C) IS MORE THAN 1.5LACS EXCLUDING NPS U/S 80(CCD). MY CONYTRIBUTION U/S 80(CCD1B) IS 1.10 LAC & MY EMPLOYER CONTRIBUTION FOR NPS IS ALSO 1.10 LACS. CAN I CLAIM EXEMPTION OF THIS EMPLOYER CONTRIBUTION OF Rs.1.10 LACS IN ADDITION TO MY CONTYRIBUTION, FOR THE ASSESSMENT YEAR 2016-17. PLEASE REPLY IMMEDIATELY, TO MY E-MAIL ID MENTIONED BELOW.
I am an officer in PSB. Can i additionaly contribute in NPS to get rebate of Rs. 50000/- as i am a member of PF and elligible to get pension on retirement.
Sir, I am govt employee. my contribution under NPS 94593/- , GIS 11520/-, House Loan Principal 185728/- total Rs.291841/- & Govt. contribution under NPS 94593/- for year 2015-16. Can I avail tax rebate on employers and my contribution for the yr 2015-16 – Please clarify.
I am state gov’t employee my nps contribution is 70000 and state gov’t also pay 70000. My 80cwill be 150000.then what about this two contribution.kindly post on my mail
Dear sir,
I am a Government employee from Telangana State. For the FY 2015-16, my contribution towards NPS is Rs 52,000/- and the employer contribution is Rs 52,000/-. And my savings under Section 80 C are above Rs 1,50,000/-(without NPS contribution of Rs 52,000). Can I claim additional deduction of Rs 50,000/- under section 80 CCD 1(B) and Rs 1,50,000/- under section 80 C. (Without claiming under section 80 CCD 1 of my NPS contribution of RS 52,000/-)?
there is a govt. employee who has not taken eduction of 80ccd for last few years but has deposited money in retirement benefit plans. now he wants to take deduction under this section for those p.years contribution. can he take this for this year only or for past few years also
80 ccd 1 And 80ccd 2 Both are rebatable in incometax 2015-16
i am a state govt employee. My contribution towards nps is Rs 42000/-and +Rs 42000/- by employer . Its both total becomes Rs 84000/-. May I take income tax rebate for Rs 84000/-in yr 2015-16 income tax return. please help me. –
SIR,
I AM Gove employee pls explain 80cce provision and calculation exmple
sir I’m a exservice man & my pay was revised from 2006as I have joined in central government office. As a result I received NPS to the of Rs.175000/- of employer contribution, my query is any cap/limit of government contribution u/s 80CCD(2). Pls guid
Hi to respected person ,
Sub :- Tax Us 80CCC can be considered for FY -2014-15 as premium paid as of today for policy due on 3 oct ’14
As per subject my question is i have filed return with tax paid to government Rs 5k Inr which arised due to policy premium not paid on 3 Oct’14 .So can i file reveised return and claim refund considering present Premium receipt having paid dt 03 Sep’15 but for the year AY 2014-15.
Please guide with resolution .
Thanks & Regards,
Afroz ( 9581834343)
Sir, I joined service in 2008. Nps started in 2013. Now the employer is ready to deposit Nps subscrication from 2008. As we will receive all employers previous contribution in this current year.Pl guide me,can we deduct employers contribution of arrear from the respective year as 80CCD(2) to calculate tax.
Sir I
श्री मान जी
कृपया मुझे यह बताने का कस्ट करें कि नियोक्ता द्वारा NPS में जमा करवाया गया 10% का contribution, डेढ़ लाख की लिमिट से ऊपर चला जाता है तो क्या यह टैक्स के दायरे में आएगा. मेरी LIC और 10% employee share को जोड़ने पर सेविंग लिमिट डेढ़ लाख आ रही है. अब क्या 10% NPS Employer Share Tax के दायरे में आएगा ? कृपया बताने का कस्ट करें.
धन्यवाद सहित
Iam working in a scheduled bank… from my monthly salary they deducted the PF contribution.. but Form 16 issued …they are not deduct the amt u/s.80C….
Form 16 shows 80CCD (1) and 80CCD (2)…
Pl clarify pf contribution fully trfd to 80CCD is allowable…
I am a HAL (PSU) employee. My employer is contributing 7% (basic+DA) towards HAL pension scheme on my name which is managed by LIC since 2007. I myself contributing 10% from my salary towards the same scheme . How can i avail tax rebate on these two.
can i avail tax rebate on employers contribution for the year 2014-2015 (please note that my total savings under section 80C is more than 1.5 lakhs).
can i avail tax rebate on employer and my pension contributions for the year 2015-2016.
I am a HAL (PSU) employee. My employer is contributing 7% (basic+DA) on my name towards HAL pension scheme which is managed by LIC since 2007 and i myself contributing 10% from my salary since 2014-15. How can I take tax rebate for employer’s and my contribution which is being deducted towards pension fund?
Can I avail tax rebate on employer’s contribution for 2014-15 yr. if so what is the max limit? Can I avail tax rebate on employers and my contribution for the yr 2015-16
I am a central Govt. Employee. My NPS contribution of the year 2013-14 was not deducted in that year instead in the year 2014-15. Due to which my contribution in the year 2014-15 has exceeded 10% of my salary. while filing ITR, exemption is being allowed for only 10% and tax is coming out to be more than it should be. How can I show my contribution to NPS distributed over the relevant year. Please advice.
I am a government employee my total savings @80c is 135000 & my contributions in NPS is 70000/- under 80ccd(1)
Please advised me what will be my total deduction for tax saving.
It should be 150000/-or 185000/-(+50000/- additional in nps) or 200000/- (80c+80ccd(1)+80ccd(1b)=2lk) ???
Pl. Explain.
I am govt employee . my saving U/s 80c is 130000 and nps is 42000 in 80CCD(1) and 42000 is employer contribution pls tell me total deduction
I have already crossed limit of Rs 150,000 and my investment is more than 2 lac, please advise how to save tax…Hi! Only the employer’s contribution is eliglbe for tax rebate under section 80CCD(2uppose if I deposited Rs 500000.00 in NPS in 5 years and after 5 years if I want to withdraw 5 lacs will I be allowed? Please let me know the withdrawal option in NPS.
please give me letter
150000 से अतिरिकत आयकर मे छूट के लिए 80CCD 1b में 50000 पेंसन फड में निवेश में आता है क्या ? यदि आता है तो यह निवेश किस सस्था से आसानी से हो सकता है ?
I have already crossed limit of Rs 150,000 and my investment is more than 2 lac, please advise how to save tax….
I am Central Government employee, joined prior to 2004; can I get the benefit of Additional deduction of Up to Rs. 50000/- Under Section 80CCD?
Sir, I am filing return and i had withdrawl my pf money, in the same the pension amount has also been release, is there tax relief on pension amount which has been release to me so that the tax can be save to me