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Deduction u/s 80ccd (1b) & 80ccd2 in case of central govt. employee

Dharmender kumar Jha (Accountant) (208 Points)

20 June 2021

Hi experts,

Is this deduction is available for central govt. employee..?
If yes than pls let me know what is the terms & conditions to claim it?

I want to know How to claim deduction of Rs 50000/- u/s 80ccd (1b) & employer contribution u/s 80ccd2 ?
Is there any limitations & conditions to claim this related to central govt. employee..?

pls reply
Thanks in Advance

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11 Replies

Asha Kanta Sharma (Manager - Finance & Accounts) (36380 Points)
Replied 20 June 2021

https://www.incometaxindia.gov.in/_layouts/15/dit/mobile/viewer.aspx?path=https://www.incometaxindia.gov.in/charts%20%20tables/benefits_available_to_individual_huf.htm&k=&IsDlg=0

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Dharmender kumar Jha (Accountant) (208 Points)
Replied 21 June 2021

Thanks dear,
I have read this earlier also.... still I m confused.
Actually there is point given by departmemt is that central govt. employed on or after 01.01.2004.

I want to know for claiming deductions is it mandatory to check joining dates in both sections.....? 80ccd (1b) & 80ccd2

CMA Poornima Madhava (CMA) (13112 Points)
Replied 21 June 2021

Since NPS scheme was initiated from Jan 2004, contributions on/after this date are eligible for deduction.

80CCD(2): Employer's contribution up to 14% of salary (in case of CG employees) is not taxable [contribution will be added as income and deduction can availed u/s 80CCD(2)]

80CCD(1B): Additional contribution by the employee up to Rs.50k is an allowable deduction.

In addition to the above, employee's contribution up to 10% of salary can be claimed as deduction u/s 80CCD(1) within the overall limit of Rs.1.5 lacs u/s 80C & 80CCD(1).

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Dharmender kumar Jha (Accountant) (208 Points)
Replied 21 June 2021

Thanks.
Actually one of my friend father working with crpf & he is doing his job since 1985.

so, according to this he is not elegible to take advantage of both sections.... right.

Thanks for clarification 👍

CMA Poornima Madhava (CMA) (13112 Points)
Replied 21 June 2021

No no. I don't think so.

He can claim deductions from the period from which he is a member of NPS scheme. As NPS started in Jan 2004, contributions since then are eligible for deduction every year.

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Dharmender kumar Jha (Accountant) (208 Points)
Replied 21 June 2021

Seriously, he can claim this....
Actually his form 16 shows a single entry of 256000/- deposited as GPF. so, can we split this amount in a elegible manner...?

CMA Poornima Madhava (CMA) (13112 Points)
Replied 21 June 2021

GPF is different from NPS. 80CCD is pertaining to NPS not GPF.

Dharmender kumar Jha (Accountant) (208 Points)
Replied 21 June 2021

One thing more is that, Is his gross salary is included employer contribution?

CMA Poornima Madhava (CMA) (13112 Points)
Replied 21 June 2021

No, contributions are made as a proportion of only basic & DA

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Dharmender kumar Jha (Accountant) (208 Points)
Replied 21 June 2021

Ok
Thanks a lot for ur reply & suggestions.
I will check his payslip, I think I will get all things from that slip, afterthat if I face any issue I will ask you again..

Thanks for your help.. CMA poornima Madhava.