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6.0%First documentSection 80C of Income Tax Act: Deductions & Tax Benefits in IndiaOpen original ↗
Second documentIs NPS Tax Benefit Available in New Tax Regime? | NPS Deduction RulesOpen original ↗
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Fixed Returns, Zero Risks & Worries
4 Plan options Life cover + Guaranteed benefits Accidental death benefit Premium protection cover
Fixed Returns, Zero Risks & Worries
4 Plan options Life cover + Guaranteed benefits Accidental death benefit Premium protection cover
Tax Savings - Top Selling Plans
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Retirement - Top Selling Plans
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Glossary
Section 80C: Allows deductions up to ₹1.5 lakh annually on certain investments and expenses. 80CCD(1B): Extra ₹50,000 deduction for NPS contributions beyond the 80C limit.
A Quick Recap of Section 80CCD
Section 80CCD(1): Covers the deduction for the individual's own contributions (employee or self-employed). Section 80CCD(1B): Covers an additional deduction exclusively for the individual's NPS contributions.
Deductions under Sub-sections of Section 80C
Section 80CCD: Section 80CCD(1)- Employee Contribution: Tax can be deducted on the amount deposited in the account under your pension scheme . The maximum deduction would be the lesser of 10% of the salary (for salaried employees) or 20% of the gross total income (for self-employed individuals) or Rs. 1.5 lakh. Section 80CCD(1B) - Self Contribution: This section provides an added deduction of upto Rs.50,000 on a deposit in the NPS (National Pension Scheme) or Atal Pension Yojana account. Section 80CCD(2) - Employer’s Contribution: An additional deduction can be claimed on employer’s contribution to the pension account for upto 10% of the salary. There is no deduction limit.
A Quick Recap of Section 80CCD
Section 80CCD(1): Covers the deduction for the individual's own contributions (employee or self-employed). Section 80CCD(1B): Covers an additional deduction exclusively for the individual's NPS contributions.