NPS Tax Benefit u/s 80CCD(1), 80CCD(2) and 80CCD(1B)

View Comments

• Sir,
  My contribution from my salary to NPS is Rs. 48000 and the same amount is contibuted by my employer.

  So, will I get the tax rebate on the amount contributed by my employer??

  • No you'll get tax rebate only on your contribution. The employer contribution is anyway tax free.

    • But i have got form 16 with the total amount contributed towards NPS by adding mine and employer's contribution i.e. Rs. 96000 , then how should i file it in ITR and under which section??

      • you keep gross salary as in form 16. Just you need to do is you deduct 48000/- in section 80CCD(2) while filing return. It will not have any impact on your tax liability.

      • Just ignore the employer contribution and deduct it from the gross salary while filing your returns.

• I have used 1.5 of 80C with other than NPS instrument, further invested 50000 under 80CCD(1B) and 30000 (10% of basic)...so total eligibility for tax exemption will be 80K???

  • The 10% of basic contribution to NPS qualifies u/s 80CCD(1) which along with u/s 80C has total limit of Rs 1.5 lakhs. So you will qualify for Rs 1.5 lakhs and additional Rs 50K for NPS u/s 80CCD(1B)

• 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

  • Yes you can open NPS account and can get benefit u/s 80CCD(1B) only up to Rs 50,000

• Sir,i have submitted form of income tax return in my department.i had rs.1265 as taxable amount. And i had 3580 rupees as refundable amount from advance income tax deductions. I had mentioned refundable amount with negative sign (-3580) in form submitted. But wrongly refundable amount of 3580 has been deducted from my salary of the February month.
  i had nil taxable amount due to advance deduction of income tax.and now 3580+3580=7160 amount is my refundable amount.

  How can i get this?i didn't submit online income tax return. Please help me.i have no idea about all these.

  • Do not worry, just file your income tax return online and you'll get your excess tax back in few weeks!

    • How can i do it?please send me link or site.efiling income tax return and e-filing income tax refund ,both are same or different?

      • Yes both are same. You have to file income tax return to get refund of excess taxes paid/deducted! You can read about tax filing here.

• Hello, I am 30. I am contributing under different sections under 80C like NPS(50000), LIC(75000), ELSS(25000) which sums up to 1.5 Lakh.
  Can I contribute another 50000 toward NPS 80CCD(1B) ? Please bare in mind I am already contributing 50000 toward NPS under 80CCD (1)

  • You can claim 50K investment in NPS benefit u/s 80CCD(1B) and 50K NPS you were claiming in 80CCD(1) can be replaced by other 80C tax saving investments.

• Sir, is it true that the contribution by an employer towards NPS for an employee is to be treated as expenses by the employer in the employer's company profit & loss account? If yes than is it not true that both employer gets benefit (by treating as expnenses) & the employee gets tax benefit under sec 80ccd (2)? Please reply. Thanks

  • Thank you for your Reply Sir

  • That's true and it was done to encourage NPS. The calculation in the article is from NPS advertisement published by PFRDA.

• Sir. I am state govt employee my contribution in NPS are 44000 per year, my employer also contribute same amount in my NPS account but employer contribution not shows in my salary slips or form 16. I want to know that am i add employers contribution in total income or simply fill the 80CCD1 bcoz only employee deduction is shown in ky pay slips ?

  • You need not add employer contribution to your income as its tax exempt. Just follow your form 16

    • Hi Amit, I have query that my gross income is Rs 15 lakhs and I am central government employee. Presently, I have invested Rs 1.5 lakh under 80C and additional Rs 50,000/- under 80 CCD(1B) i.e. NPS tier 1. Now, I am want to know that is there any scope of saving under 80 CCD(2).

      • 80CCD(2) is tax exempted employer contribution. You cannot do anything about it.

• I have exhausted my 1.5 lakh 80C with LIC and PPF;
  1) I want to invest addtional 50,000 in Corporate and
  2) 50000 in Individual NPS Tier I Acccount'

  Do i get the total 2,50,000 exemption from tax? Please advice

  • No You'll get max of Rs 2 lakh exemption.

• Hai Amit,

  My 80C 1.5 lakh deductions are already exhausted through PPF, LIC and SSY. To reduce tax I am planning to take NPS. If I am contributing Rs. 60,000 on next year in NPS, then can I avail the benefit of section 80CCD(1B). Please advice.

  • Yes you can up to Rs 50,000 u/s 80CCD(1B)

• Hi Sir,
  My company has started NPS in 80ccd(2) this year i.e 10% of basic+da. I am little confused whether to go for it or not. If I avail this, I get 1.5L in 80c and 50K together 2L tax exemption.
  But can I invest 50k in NPS on my own rather than going through the company for 10% thing and avail the same tax benefit on 2L (1.5L 80c + 50K NPS). If so, under which section will this 50k of NPS investment accounted ?

  • If you go through your employer - you get two benefits - 1> 80CCD(1B) and 80CCD(2). Essentially 80CCD(2) is employer contribution up to 10% of basic salary and is tax exempted.
    In case you go on your own you'll get tax benefit u/s 80CCD(1B) only.

    NPS is long term investment and you might not be able to opt out subsequently. So take your decision accordingly.

    • Thanks much.