NPS 80CCD(1B) Whether Eligible or Not - Receipt within FY 20-21, however funds credited in FY 21-22

Uttam Saha (TAX PROFESSIONAL) (115 Points)

25 December 2021  

A taxpayer has received a NCIS Acknowledgement Date 26/03/2021 from POP for Rs. 50,000/-. However the NPS official website shows the funds have been credited on 05/04/2021 under his PRAN. Under the circumstances is he eligible for NPS deduction under 80CCD(1B) for FY 20 - 21?

As the tax payer made the contribution with the intention of keeping his total income after all deductions (including NPS) below Rs. 5 lakhs,  the question arises as otherwise he will need to pay the necessary tax, cess and interest. Please guide.