dcps pension
Anil Nalawade (1 Points)
13 January 2018
dcps deduction in which section and how much amount deductad and what about remening amount ?
Anil Nalawade (1 Points)
13 January 2018
ujjwala gupta
(practicing chartered accountant- core area of expertise Direct and Indirect taxation)
(27 Points)
Replied 14 January 2018
1. A deduction with respect to the Defined Contribution Pension Scheme (DCPS) can be claimed under section 80CCD(1) of income tax act, 1961 of the whole of the amount so paid or deposited as does not exceed,—
i. in the case of an employees, 10 % of his salary in the previous year; and
ii. in any other case, 10% of his gross total income in the previous year (20% w.e.f 01.04.2017)
2. This deduction can be claimed by an individual employed either by the Central Government or, individual employed by any other employer, or any other individual assessee (i.e. Self employed)
3.Maximum amount of Deduction under section 80C, 80CCC and 80CCD(1) will be 150000/-.
4.With effect from 01.04.2016 an additional amount of Rs. 50000/- can be allowed under section 80CCD(1B) (Apart from deduction claimed under section 80C, 80CC and 80CCD).
5. Additional amount of decduction under section 80CCD(1B) is allowed even if no deduction under section 80CCD(1) has been claimed.
6.No deduction with respect to amount already claimed under section 80CCD will be allowed under section 80C.
for more clarification please feel free to write me at g.ujjwala @ gmail.com
Regards,
CA Ujjwala Gupta
Jitendra Patil
(2 Points)
Replied 27 January 2019
SBM & ASSOCIATES
(2 Points)
Replied 25 March 2022
Hello Jitendra Patil Sir,
As it is specifically mentioned that under section 80CCD (1B) that "Contribution to NPS" is eligible for additional deduction of Rs. 50000 Over and above deduction of Rs. 150000 U/s 80C.
Hence The additional deduction of Rs. 50,000/- is available only for contributions made to NPS Tier 1 accounts and not other accounts.
Even Tier 2 accounts are not eligible to claim the deduction under Section 80CCD(1B)
Therefore Contribution made to DCPS is not eligible for dediction U/s 80CCD (1B).
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