Navneet Singal

A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Retirement plan ensures that people live with pride and without compromising on their standard of living during advancing years. Pension scheme gives an opportunity to invest and accumulate savings and get lump sum amount as regular income through annuity plan on retirement.

The National Pension System (NPS) was launched by Government of India on 1st January, 2004 with the objective of providing retirement income to all the citizens. NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens.

Initially, NPS was introduced for the new government recruits (except armed forces). With effect from 1st May, 2009, NPS has been provided for all citizens of the country including the unorganized sector workers on voluntary basis.

Currently, Investment in NPS can be made by the following sectors:

  1. Central/State Govt. Employees
  2. Corporates
  3. All Citizen Model (Individual)
  4. Unorganized Sector Workers

Every subscriber to NPS will be allotted a unique Permanent Retirement Account Number (PRAN). This unique account number will remain the same for the rest of subscriber’s life. This unique PRAN can be used from any location in India. It will provide excess to investment in two type of accounts:

  1. Tier I Account: This is a non-withdrawable account meant for savings for retirement. (Tax benefit is available)
  1. Tier II Account: This is simply a voluntary savings facility. The subscriber is free to withdraw savings from this account whenever subscriber wishes. No tax benefit is available on this account.

NPS is an EET Scheme which means exempt at the time of investment, exempt at the time of appreciation and Taxable at the time of withdrawal.

Tax benefit provided under Income Tax Act, 1961 can be described as follows:

Tax Benefits At the time of Contribution in Pension Scheme

Tax benefits to employer:

Contributions made by the employer (upto 10% of Basic + DA) is allowed as a business expense under Section 36 (1) (iv) (a) of Income Tax Act 1961

Tax benefit to employee:

Employer’s contribution – Eligible for tax deduction upto 10% of Salary (Basic + DA) contributed by employer under sec 80 CCD (2)

It is to keep in mind that this contribution is not included in overall limit of Rs. 1.5 lakhs as mentioned u/s 80CCE. It means that if any employee has basis salary of Rs. 30,00,000/- and his employer contribution Rs. 3.00 lakhs, he can get a deduction of Rs. 3.00 lacs u/s 80CCD (2). It can provide lot of tax benefit to employees under higher salary brackets.

Employee’s contribution Eligible for tax deduction upto 10% of Salary (Basic + DA) under sec 80 CCD (1) within the overall ceiling of Rs. 1.5 Lac under Sec. 80 CCE.

Further w.e.f. FY 2015-16, in addition to the deduction u/s 80 CCD (1), deduction of Rs. 50,000 has been on contribution in NPS. (U/s 80CCD(1B))

It is to further clarify that if an corporate has not opted for the corporate plan and employees are making investment under the all citizen model i.e. on their individual basis, even in that case investment made by them can be claimed by the employee and the employer is liable to provide deduction u/s 80CCD (1) and u/s 80CCD (1B) to the employee under form 16.

In other words, it can be mentioned that an employee can claim overall deduction of Rs. 2,00,000/- (i.e. Rs. 1,50,000/- u/s 80 C/80CCC/80CCD(1) and Rs. 50,000/- u/s 80 80CCD(1B))

However, if we go through the provisions related to Pension Plan i.e. 80CCD literally, some ambiguity can’t be denied. New inserted provision 80CCD (1B) reads as follows :

“(1B) An assesse referred to in sub-section (1), shall be allowed a deduction in computation of his total income, [in addition to the deduction allowed under sub-section (1)], of the whole of the amount paid or deposited in the previous year in his account under a pension scheme notified or as may be notified by the Central Government, which shall not exceed fifty thousand rupees:

It means that additional deduction of Rs. 50,000 is in addition to the deduction allowed under sub-section (1). It can have two meanings

  1. Additional deduction is after completion of 10% limit as provided u/sub section of 80CCD.
  2. Addition deduction is over & above the ceiling limit of Rs. 1,50,000/- as defined u/s 80CCE.

It I interpret as per point no. (1), to get additional deduction of Rs.50,000/-, I have to invest in NPS more than 10% of my basic salary wherever as per point no. 2, any investment in NPS can be considered as additional depreciation.

However, in the Budget Speech given by FM in the Lok Sabha, it is clarified by the example cited in the speech that the assessee can claim additional deduction even though he is within the limit of 10% of basic salary/GTI, still it is better to clarify the situation by issuing a circular in this regard.

Taxation at time of withdrawal of money from pension fund

Where any amount standing to the credit of the subscriber in respect of which a deduction has been allowed together with the amount accrued thereon, if any, is received by him or his nominee, in whole or in part, in any previous year,—

(a) on account of closure or his opting out of the pension scheme; or

(b) as pension received from the annuity plan purchased or taken on such closure or opting out,

the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee or his nominee, as the case may be, in the previous year in which such amount is received, and shall accordingly be charged to tax as income of that previous year.

Further, the subscriber shall be deemed not to have received any amount in the previous year if such amount is used for purchasing an annuity plan in the same previous year.

(Author may be contacted at navneet.singal@gmail.com )

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81 responses to “NATIONAL PENSION SCHEME – Additional Deduction of Rs. 50,000/-. Whether further clarification is required?”

  1. Jose Alexandre Rodrigues says:

    I am a retired Govt. servant. I am 64 years of age now. Besides deductions of Rs. 1,50,000, I want to avail the benefit of Rs.50,000/- (NPS) under Sec. 80 CCD(1B). Am I eligible for this? I also want to know what it means ‘All Citizens Model’.

  2. Jose Alexandre Rodrigues says:

    I am a retired Govt, Officer. I am 64 now. Am I eligible to additional benefit of Rs. 50,000/- under u/s 80 CCD(1B) over and above deduction of Rs. 1,50,000? Or is there the age limit? What is the meaning of All Citizens Model?

  3. Suresh Kumar says:

    I’m government employee , having savings less than 1.5 lac excluding CPS and CPS amount exceed 50000 , can I split the CPS amount in 80CCD AND 80CCD (1B). If so CAN u Share THE LINK OF G O which clearly mention that CPS can be split between 80CCD n 80 CCD(1B) to my mail id

  4. hitesh suthar says:

    I am a central government employee joined in 1988.I am depositing rs150000 in GPF. Additional RS 50000 can be claimed for deposit in nps.plz suggest me

  5. Vandna says:

    Hello sir I have savings in PDF 1 5000 . Can i take additional benefits of 50000 NPS in tier 1 which is deducted from my salary. All over can I show 2 Lang deduction from tax

  6. chidambara says:

    LIMIT OF RS. 150000 FOR SEC 80 CCE IS INCLUSIVE OF 80C, 80CCC AND 80CCD SUB SEC (1) ONLY. NOT THE SECTION 80CCD SUB SECTION 1B. IS THIS CORRECT ? KINDLY CLARIFY.my cps amount is Rs.10169. can i divide this as 50000 in80ccd1b and rest in 80ccd(to be included in 80c max rs 150000.)

  7. SANJEET MAKHARIA says:

    RESPECTED SIR, WHETHER,I CAN INVEST THE ONE TIME SUM OF RS1.50 LAC IN N.P.S.SCHEME LINKED WITH LIC PLAN 842,THROUGH INVESTMENT OF MY HUF FUND, AS KARTA OF HUF? WHETHER SAME IS EXEMPTED UPTO RS.50,000/-U/S.80CCD(1B) OF I.T.ACT.& UNDER THE CENTRAL GOVT.PLAN.? YOUR REPLY WILL BE HIGHLY SOICITED.WITH REGARDS.(R.K.MAKHARIA,RAIPUR.CG.

  8. Sanjay Kumar says:

    Hi I am central govt employees joined department in 2001. My GPF savings is 150000. I want additional investment in tyre II NPS . Can I get benefit under 80 ccd1b.

    • Ajoy Kumar Bhata says:

      I am a central government employee joined in 2000.I am depositing rs150000 in GPF. Additional RS 50000 can be claimed for deposit in nps.plz suggest me

  9. Prakash says:

    sir i am bank employee since 1999 having pension option.now my query is that can i open NPS for which i can get income tax deduction under 80 cc(d). please clarify

  10. Arvind Kr Singh says:

    Dear Sir
    Last year maine PPF account may 100000 deposit kiya, 24000 max life may deposit kiya or 26000 tution fees… . Total 150000 ka invest kiya tha, jo ki 80-c may rebate liya tha extra may NPS may 50000 show kiya tha or rebate bhi mila….. Par is baar mere school may nps deduction ko nahi mana jaa raha hai……. Why? ????

  11. solanki amit says:

    If employer does not provide the facilities of NPS contribution from employer us 80ccd(2) as it is not mandatory/statutory compulsion, what should do employee for getting this benefits?

  12. anupumar ram says:

    sir

    please clarify whether NPS account can be opened in Post office or which Nationalized bank
    how many years we need to deposit
    when we will start getting bk the amount
    how much money every month will be getting
    where we can get detailed brochure
    what is the age limit to contribute
    plz let us know

    rgds
    anupumar ram

  13. NEAH says:

    If deduction u/s 80c is within limit of 150000 then can I claim deduction of National pension scheme u/s 80c or 80ccd?

  14. P N Rao says:

    Now a days no questions are being asked, So it is understood no reply is required for so many queries raised by so many people. Any clarification is required I may be asked. P N Rao 9449059050, p_rao1956@yahoo.co.in.

  15. pillalamarry venkata naga sri says:

    My wife want to to in NPS. She is house wife and does not have any independent income. If I pay from my salary, shall I get Tax rebate under 80 ccd.

  16. Pulkit Choudhary says:

    I work in a public sector bank. My Bank contributes Rs.1,250/- every month as pension contribution i.e. Rs.15,000/- in a financial year under the Employees’ Pension Scheme. My query is that can I use this amount for deduction under sec 80 C or any other section of the I.T. Act to exempt my income from tax?

  17. Savera Singh says:

    Please Let me know If an Employee can specify to his/her employer , as to which Tier(Tier-I or Tier-II) of his NPS account the Employer Contribution to NPS has to go? Or is it mandatorily always Tier-1 ?

  18. Savera Singh says:

    Please Let me know If an Employee can specify to his/her employer , as to which Tier(Tier-I or Tier-II) of his NPS account the Employer Contribution to NPS has to go? Or is it mandatorily always Tier-1 ?

  19. silvance says:

    I am now 49 years old. Can I availed this benefit ?
    If I will have deposit Rs50000/- per year then what amount will received per month after my retirement ?

  20. ANKUR says:

    I am working for a bank, where 10% of my gross salary is being deducted towards NPS and same amount is being contributed by employer. Can I claim the tax exemption on My contribution (which is approx 50000) over n above 1.5 lakh ceiling?

  21. M. K. Dev Roy says:

    (i)My wife teaches in a College. Her annual income for the year 2015-16 exceeds 11 lakhs. She has invested Rs. 1, 50, 000/- under u/s 80 C. She plans to invest another 50, 000/- under National Pension System. Kindly confirm whether she will be allowed additional tax benefit, if she opts for this scheme, if so to what extent ?

    • Ninad N S says:

      Yes, your wife will get additional 50,000.₹ as deduction if she invests/deposits under NPS. It is an additional deduction u/s 80ccd(1B).
      Tell your wife to intimate her Employer if she invests in NPS.

  22. Maneesh says:

    hi which all banks / companies are offering the National pension scheme under 80 CCD B1

  23. Dr.Dinesh Rohilla says:

    Tier II IS NOT ELIGIBLE

  24. K Ramesh says:

    Sir,
    I am working in state government. My NPS contribution (10% of basic) is Rs. 75,000. Can I split this amount to get additional tax benefit by showing Rs. 30,000 towards savings of Rs. 1,50,000 and remaining Rs. 45,000 towards additional tax benefit.

  25. suyash says:

    Sir,

    I am a central govt employee contributing Rs. 55,000/- in the NPS as mandatory employee contribution, Can I claim this amount u/s 80CCD 1B instead of 80CCD(1) and invest in other instruments for completing my limit of Rs. 1,50,000/- u/s 80C. Alternatively is 80CCD 1B valid for mandatory contribution as well?

  26. P Singh says:

    I have saved Rs. 150Lakh u/s 80C. I want benefit of Rs.50,000 u/s 80CCE. For your kind information, I am a State Government Employee. Please inform me in Detail how can I get this benefit.

    Thanks and Regards,

  27. SOMNATH CHAKRABORTY says:

    Please kindly inform to me the following details
    1. How can I open this PRAN ?
    2. Where I can open this PRAN ?
    3. If I will have deposit Rs50000/- per year then what amount will received per month after my retirement ?
    4. I am now 49 years old. Can I availed this benefit ?
    5. I am a Central Govt. employee.

    • S. Bhaskar says:

      I am 56 years old. If I deposit Rs.50000/- for 4 years for additional tax benefit, what % of amount will be returned by NPS, 40% or60%/

  28. CA MURARI KHETAN says:

    I have a query. Whether investment in Tier I or Tier II or BOTH is eligible for deduction u/s 80CCD?

    Please clarify……..

  29. rakeshsade says:

    I m confused if PF based components is considered or only Basic+DA for NPS exemption

  30. Shailendra says:

    Sir,
    My saving details etc are as follows
    Item 1) LIC+PPF+CGEIS = 1.8Lakh
    Item 2) Individual Contribution to NPS as i am a central govt. employee (deducted from my Salary) = 155000
    Item 3) Employers Contribution to NPS (govt. contribution) = 155000
    Now I can claim savings mentioned under item 1 for 80C (limited to 1.5 Lakhs)
    NPS contribution by employer is default comes under 80CCD (2).
    Now my query is-
    1)Savings shown under item no.2, will come under 80CCD 1(B) or it will fall under 80CCE which will give me additional tax benefit?
    2)Do I need to contribute additional Rs.50,000 to claim benefit under 80CCE?
    3)How much deduction I can claim on basis of above investment?
    Kindly clarify.
    Thank you
    – Shailendra

    • vishwas rana says:

      dear shailenda…i also have same case and i think u r right ..have u got d answer from any expert ..if yes plz share with me regarding 80ccd1b
      thanx vishwas rana

  31. Pallab Goswami says:

    Sir,
    My saving details etc are as follows
    Item 1) LIC+PPF+CGEIS+Hosing Loan Principal = 1.7 Lakh
    Item 2) Individual Contribution to NPS as i am a central govt. employee (deducted from my Salary) = 45000
    Item 3) Employers Contribution to NPS (govt. contribution) = 45000
    Now I can claim savings mentioned under item 1 for 80C (limited to 1.5 Lakhs)
    NPS contribution by employer is default comes under 80CCD (2).
    Now my query is-
    1)Savings shown under item no.2, will come under 80CCD 1(B) or it will fall under 80CCE which will give me additional tax benefit?

    2)Do I need to contribute additional Rs.50,000 to claim benefit under 80CCE?

    Kindly clarify.

    Thank you
    Pallab Goswami

  32. Gurumurthy K H says:

    please clarify the following
    1.additional contribution to NPS u/s section 80cc(1B) is over and above the 10% of salary
    2. after attaining superannuation 60% of corpus fund withdrawal is taxable or not
    3. additional contribution to tire -1 a/c how i should proceed

  33. raju says:

    i want clarification on the circular issued by income tax department on dated 2 Dec 2015 regarding Total Deduction under section 80 that total deduction is 1,50,000 but if an employees is under NPS scheme and his contribution for pension scheme under section 80CCD (1B) is 10% i.e.of his salary more than 50,000 then what amount he has to deduct for the AY 2016-17 Rs 1,50,000 or 1,50,000+50,00=2,00,000 kindly make it clear to me at your earliest please.
    it is mentioned in page 33 of said circular——-
    It is emphasized that as per the section 80CCE the aggregate amount of deduction under sections 80C, 80CCC and Section 80CCD(1) shall not exceed Rs.1,50,000/-. The deduction allowed under section 80 CCD(1B) is an additional deduction in respect of any amount paid in the NPS upto Rs. 50,000/-. However, the contribution made by the Central Government or any other employer to a pension scheme u/s 80CCD(2) shall be excluded from the limit of Rs.1,50,000/- provided under this section.

  34. S.RAGHAVENDRA says:

    please clarify whether the 60% amount withdrawable after attaining the age of 60 years is taxable or not. My doubt is whether this scheme is under EEE model or EET model.

  35. Ravi Kumar Mattemalla says:

    Sir,
    My saving details etc are as follows
    Item 1) LIC+PPF+CGEIS+Hosing Loan Principal = 2.3 Lakh
    Item 2) Individual Contribution to NPS (deducted from my Salary) = 85000
    Item 3) Employers Contribution to NPS (govt. contribution) = 85000

    Now my understaing is
    I can claim savings mentioned under item 1 for 80C (limited to 1.5 Lakhs)
    NPS contribution by employer is default comes under 80CCD (2).
    Savings shown under item no.2, my own contribution, I can claim under 80CCD 1(B).

    Is my understanding correct or do I need to contribute additional Rs.50,000 ?

    Please clarify
    Thank you
    M Ravi Kumar

  36. R H Master says:

    what is the procedure if pran no is alloted after a year of joining?

  37. Amit says:

    Hi,

    My employer in deducting NPS from salary direct which is over and above 150k on exemption.

    I want to invest in additional 50k in NPS for which I will extra benefits. I want to know in which account it is deducible it is on Tier-1 or Tier-2 account, so I can invest accordingly.

    Thanks,
    Amit

  38. P.RAVIKUMAR REDDY says:

    I have Saved 1,50,000/- under 80c/80ccc/80ccd(1).How can I save another 50,000/- under 80ccd(1B).Please give valuable information.

  39. Ayush Pawtaei says:

    Whether Senior Citizen can invest in such a scheme?

  40. Pavan lodha says:

    Sir, if i am already having other investments like lic, ppf etc (except nps) amounting to rs. 1.5 lacs, my 80cce limit is exhausted. My employer is deducting 10% of my salary eveey month which amounts to approx rs. 80000 per year. Can i claim deduction of 80CCD(1) for rs. 50000 on this nps amount OR i have to invest rs. 50000 over and above the employee deduction to get this benefit?
    Pavan lodha

    • Pradeep kumar sharma says:

      I got pran nomber in April 2015 But i joined servie Oct 20

      06 and my nps is deposit from april 2015.but i want to deposit my nps from 2006 .can i do it.if i do it please send me goverment order

  41. Guest says:

    Only 1.5 lac is total limit even Rs. 3 lacs deduction for employee with 30 lac salary.

  42. Harishankar says:

    dear Navnit ji, we can invest Rs 50k or more in NPS and what would be pension amount if deposited 1lac for 5 years
    Whether we can withdraw whole amount after5 year or nominee would be paid for the balance after death of contributor.

    I will appreciate if you kindly explain in simple way.

    best regards
    Harishankar

    • drshaifali says:

      Sir
      I want to deposit 50000more. But officers r not aware about this. They r asking for circular. Cann u provide it. Pl. Tel me d procedure to save this amount.

  43. Ashish Jain says:

    Could anyone clarify if following understanding for tax exemption is right in all 3 scenarios listed
    Annual Basic – 3,00,000
    PPF/PF – 1,30,000
    NPS (online bank site payment) – 70,000
    NPS- Payroll deduction <= @10% basic
    (No contribution by employer) – 30,000

    In this case I get tax exemption under 80CCC – 1,50,000 for PPF/PF. Queries are :
    1) Do I get tax exemption under 80CCC for Rs 20,000 (1,50,000 – 1,30,000) against online bank site payment ?
    1) Do I get tax exemption under 80CCD(1B)for Rs 50,000 against online bank site payment?
    2) Do I get tax exemption under 80CCD(2) for payroll deduction of Rs 30,000 though employee is not contributing anything from his own pocket?

  44. sunil says:

    Hi,
    The Query Is Regarding Tax Planning Using NPS.
    As NPS Contribution (Upto 10% Of Basic + DA) By Employer Is Not Included In Taxable Income Of Employee, Are There Any Companies Who Are Planning Such Sort Of Tax Planning Where NPS Contribution By Employer Is Made Part Of Employees Salary (I.E. It Is Made A Part Of CTC) . Any Special Conditions For Such Practice (Like Board Approval, Special Resolution, Revision Of Employees Compensation Letters Etc)

    Please Share The List Of Big Corporates, MNC’s & PSU’s Following Such Practice.

    • S. Nambi says:

      As per Sec 17(1), the employer contribution to NPS is to be included in Salary income. And hence, the contribution will be just added to your income and then allowed as deduction.

  45. Mihir says:

    I am investing in insurance,PPF and claiming deduction under Rs.1,50,000/= under 80C.Should I open an NPS account and invest Rs.50,000/= to get further deduction undr 80CCD(1B)?

    Regards

  46. Navneet says:

    Dear Sachin,

    Deduction of employee/individual contribution u/s 80CCD (1B) & and deduction of employer contribution u/s 80CCD (2) is exclusive of deduction u/s 80C.

    Thanks & Regards,
    Navneet.

  47. Navneet says:

    Dear Sukhen Sarkar,

    You can get deduction u/s 80CCD (1B) of Rs. 50,000/- on your investment in NPS.

    Regards,
    Navneet Singal

  48. Navneet says:

    Dear Shivam agrawal,

    You can get addition deduction u/s 80CCD (1B) of Rs. 50,000/-.

    Regards,
    Navneet

  49. Navneet says:

    Dear JAI,

    Your observation is right.

    Regards,
    Navneet

  50. Navneet says:

    Dear mangesh kolapkar,

    There is no Maximum Limit of Investment in NPS. However, there is limit for Deduction under Income Tax for NPS.

    Regards,
    Navneet

  51. Navneet says:

    Dear Ajit Kumar,

    Deduction u/s 80CCD (1B) of Rs. 50,000/- is in addition to deduction of Rs. 1,50,000/-. In respect of other procedural issues, you can get all of the answers at PFRDA site.

    Regards,
    Navneet

  52. Navneet says:

    Dear Arun Kumar,

    Deduction for Investment in NPS is available to all individuals whether he is an employee or not.

    Regards,
    Navneet Singal

  53. Navneet says:

    Dear vnnmurthy

    NPS is totally different from CPF. So, deduction u/s 80CCD(1) or u/s 80CCD(1B) will be available.

    Regards
    Navneet

  54. vnnmurthy says:

    Sir ,
    I would like to know the govt servant opted in CPF and as such he will not be getting Pension after retirement But at the time of retirement he will get lum sum of cpf accumulated .If The employee contributes for this national Pension scheme ,Then is he eligible for additional 50000 tax rebate or not ? because he is getting tax benefit for his 10% of his basic + GP contribution towards CPF own contribution .please clarify.

  55. Arun Kumar Jha says:

    Dear Sir,
    I am in the teaching job for last 28 years in a West Bengal Higher Secondary school fully aided by the Govt. of West Bengal (our salary is paid by the State – Govt). I bought an LIC policy Jeevan Suraksha in 2001 (Annual Premium Rs 10,606). Am I eligible for the NPS (u/s 80 CCD) for availing another benefit of Rs 50,000.00 in I T in FY 2015-2016.
    Please enlighten me in this regard.
    Thanks a lot.

  56. Padmaja says:

    I have made application to NPS through SBI with Rs. 150000/- and initially debited the amount after 1 month massage had been received by me that your NPS acc have Rejected” and they credited the total amount to my account.

    Not mentioned any reason for rejection and Main SBI Branches dont know about NPS

    Then Why this NPS introduced by Govt, Time waste and Money Waste process
    Better to not to introduced this type of felicities as govt has failed to maintain through their employees.

    Padmaja Rayala
    Chartered Accountant
    7306906789

  57. AJIT KUMAR DAS says:

    I’m a self-employed professional filing ITR every year.My age is 56 years.
    Please confirm:
    1. If, I’m eligible for NPS ?
    2. What is the min & max amount I can deposite per year ?
    3. If, I’ll get exemption on that amount in addition to 1.5 Lacs ?
    4. Tenure of deposite ?
    5. What will be the GOVT’s contribution ?
    6. Where can I open that a/c ?
    7. When & how I’ll get back the refund ?

    Thanks & Regards.

  58. mangesh kolapkar says:

    How can I deposit 50,000/- rs in NPS when it is clearly written that maximum contribution is 12,000/-.

  59. JAI says:

    LIMIT OF RS. 150000 FOR SEC 80 CCE IS INCLUSIVE OF 80C, 80CCC AND 80CCD SUB SEC (1) ONLY. NOT THE SECTION 80CCD SUB SECTION 1B. IS THIS CORRECT ? KINDLY CLARIFY.

  60. Shivam agrawal says:

    Dear sir
    Plz clarify that, if our investment in NPS is beyond d exemption limit i. e. 150000. While we have invested within prescrived rate 10%. Then exemption of such extra investment can be avail from additional exemption amount 50000 or not.

  61. Shankar Dutta says:

    For list of pop-sp in your district , kindly visit the website of nps.How ever it is true that many authorised banks are not aware about the rules of nps .

  62. Sukhen Sarkar says:

    Dear Nabaneetji
    I have gone through the content of the clarification given by you.But still I am in confusion.
    My monthly basic+salary is Rs.69500.00.My monthly PF subscription is Rs.15000.00.
    Now,tell me if I invest Rs.50000.00 per annum,whether I shall get the benefit of additional benefit of deduction of Rs.50000.ok u/s 80CCD(1B).

  63. venkataramu says:

    sir

    please clarify
    whether it can be opened in Post office or which Nationalized bank
    how many years we need to deposit
    when we will start getting bk the amount
    how much money every month will be getting
    where we can get detailed brochure
    what is the age limit to contribute
    plz let us know

    rgds

  64. ram babu B.Com says:

    LIC & PF 1,50,000. in the scheme to be notified 50000 will be invested. then can assessee claim 200000 deduction.

  65. S. MANOHARAN says:

    Sir
    the said nps may useful for salary class only. There is no awarnes and careful from on organised workers. They willnot worry about the tax matters.The said scheme mayuseful of epf benifit

  66. sachin says:

    Please clarify the following:

    1. sec 80 – we can do upto 150000 in NPS
    2. Sec 80ccd- contribution by employer, additional to no. 1 above
    3. additional 50000 can be invested under 80 ccd (b) over and above 1 & 2 above

    Am I understood correctly?

  67. sekaran says:

    Most of the announcements coming from the Fin Minister are half baked. Examples: Sukanya Samrudhi, KVP and now this Pension scheme. The FM never specifies to which age group, where all the scheme will be operatedd and what is the ultimate pros and cons etc which people are eager to learn from a single window i.e. the GOI. Instead GOI is behaving like a big “AAP agent” with a “Huge Jhadu” to mop up whatever money is left out there with you.
    Instead of putting Rs 15 lakhs as promised in every one’s pocket GOI is trying to scrape the crumbs. GOI should be more decent.
    Such piecemeal announcements are meaninbgless and lowers the credibility of the entire Govt Machinery. If this kind of listlessness contines unabated, people will soon start singing Jana Gana Mana for the BJP Govt. RaGa can lift up his collar and await the PM ship.

  68. Ravikumar says:

    Dear Sir,

    You have mentioned that the scheme is open to all citizens. It is not so. Whether Senior Citizens can contribute? I do not think so, for there is age restriction.
    Kindly be specific without giving rise to ambiguity.

    Ravikumar

  69. k k Sarawagi says:

    Dear Mr. Pratik,

    in order to be eligible for addition deduction u/s 80CCD (1B), some amount is needed to be invested in pension scheme u/s 80CCD (1) which will be under the overall limit of investment u/s 80CCE of Rs. 1.50 Lacs. The additional amount of pension shall qualify for deduction u/s 80CCD(1B) after exhausting aggregate deduction of Rs.1.50 Lacs.

    The provision has been made for boosting the investment in pension scheme for future security of an individual.
    KK Sarawagi

  70. Pratik says:

    Dear Navneetji,

    I think you have misunderstood provision, You should note that section 80CCE is overriding section to section 80C, 80CCC, and 80CCD. Hence, no person can claim dedcution under all these section over and above Rs. 1.5 lakhs. Further, Fianace Bill, 2015 as approved by president of india also provides amendement made in newly insterted section 80CCD(1B). Now the line “, [in addition to the deduction allowed under sub-section (1)” is replaced by “whether or not any deductions is allowed under sub-section (1)”. This requires reconsideration of your analysis. Upto my understanding, it is for the purpose of extending additional deduction upto Rs. 50000 in case where condition of 10% of Salary keep amount eligible for deduction u/s 80CCD(1) below threshold of Rs. 1.5 lakh. In no case overall deduction can exceed Rs. 1.5 lakhs. Kindly Confirm this by leaving reply to this comment so that readers does not get misleded. or else give me your views on my understanding.

  71. Abhishek Kumar Gupta says:

    Please let us know which bank will be opening this account because none of the banks are aware of this type of account so far.

  72. Saravanan says:

    Under 80CCD(2) if basic salary + DA of an employee is Rs.30 lacs then the maximum exemption is for Rs.3 lacs – 10% of basic salary + DA for contribution by employer

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