New section 80ccd(1b)

This query is : Resolved

HIREN (Querist)
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11 February 2016 In following scenario, how much deduction will be allowable for FY 2015-16.???

LIC Premium-------------------------------------> Rs. 70000/-
PPF------------------------------------------------> Rs. 30000/-
Employee's contribution to NPS -------------> Rs. 60000/- (Deducted from salary)
Employer's contribution to NPS --------------> Rs. 60000/- (Equal contribution by company)

Person deposited amount of Rs.51000/- to his NPS account from outside.

As per my View, allowable deduction is Rs.260000/-. Pls correct is I am wrong.

LIC Premium Rs. 70000/-
PPF Rs. 30000/-
Employee's NPS Rs. 60000/-
Total Rs. 160000/- allowable u/s 80(C) subject to maximum Rs.150000/-

Employer's NPS Rs. 60000/- allowable u/s 80CCD(2) subject to maximum 10% of salary

NPS from outside Rs.51000/- allowable u/s 80CCD(1B) subject to maximum Rs.50000/-

Total Rs. 260000/- (150000+60000+50000)

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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11 February 2016 Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2014-15 (assessment year 2015-16). The limit for financial year 2015-16 is also Rs 1,50,000.

FY 2014-15 (assessment year 2015-16)
Total Deduction under Section 80C, 80CCC and 80CCD(1) cannot exceed Rs 1,50,000.
For FY 2015-16 (assessment year 2016-17)
A new section 80CCD(1B) has been introduced to provide for additional deduction for amount contributed to NPS of up to Rs 50,000.
Therefore for financial year 2015-16, Total Deduction under Section 80C, 80CCC, 80CCD(1) and 80 CCD(1B) cannot exceed Rs 2,00,000.
From assessment year 2012-13, employer's contribution under section 80CCD(2) towards NPS is outside the monetary ceiling mentioned above.