80 ccd - national pension scheme and 80 cce benefit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2016 Hi

One of our employee has declared his 80 CCE declarations upto Rs 1,21,000/- and he has declared Rs 74,000/- as National Pension amount. Should he be given overall benefit of Rs 1,95,000/- or Rs 1,71,000/- ( as overall capping for NPS is Rs 50,000/- for 80 CCD).

Kindly help with the relevant article in Budget 2016.

Thanks in advance ! !

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2016 Please revert ! ! Its a bit urgent.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

14 June 2016 Reading into Section 80CCE, it states that The aggregate amount of deductions under section 80C, section 80CCC and sub-section (1) of section 80CCD shall not, in any case, exceed Rs 1.5 lacs.
So, deduction of Rs 50K under Section 80CCD (1B) is over and above the limit of Rs 1.5 lacs.

Upgrade to CAclubindia Pro. Subscribe Now!

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

14 June 2016 Benefits will be as below
80C,80CCC & 80CCD(1) Max. amount will be 1.50 Lacs as deduction
80CCD(1B) will be additional deduction of Rs. 50K as deduction
So Total Deduction will be 2.00 Lacs as deduction
I.e you can bifurcate 80CCD (1) and 80CCD(1B) amount for your benefits but you have to take max. deduction amount of Rs. 50000/- in 80CCD(1B) not more than that.