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sec 80CCD

Kapil Inamdar (Fund accountant) (32 Points)

12 January 2018

please guide me towards how the exemption under sec 80CCD can be claimed. Along with tenure for which amount need to be deposited, account where the amount need to be deposited, Maximum exemption amount that can be claimed and Rate of interest can be earned on the amount.

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RAJA P M ("Do the Right Thing...!!!") (128062 Points)
Replied 12 January 2018

Section 80CCD:

Deduction for Contribution to Pension Account

Employee’s contribution – Section 80CCD (1) Allowed to an individual who makes deposits to his/her pension account. Maximum deduction allowed is 10% of salary (in case the taxpayer is an employee) or 10% of gross total income (in case the taxpayer being self-employed) or Rs 1, 50,000, whichever is less.

From FY 2017-18 – In the case of a self-employed individual, maximum deduction allowed is 20% of gross salary instead of 10% (earlier subject to a maximum of Rs1, 50,000).

However, the combined maximum limit for section 80C, 80CCC and sec 80CCD (1) deduction is Rs 1, 50,000, which can be availed.

Deduction for self-contribution to NPS – section 80CCD (1B) A new section 80CCD (1B) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible.

Employer’s contribution to NPS – Section 80CCD (2) Additional deduction is allowed for employer’s contribution to employee’s pension account of up to 10% of the salary of the employee. There is no monetary ceiling on this deduction.

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