Скачать или смотреть Section 80CCD (1)

Section 80CCD (1)
This subsection defines the rules related to income tax deduction available to individuals for contributions made to the NPS. It is irrespective of the fact whether the contribution has been made by a government employee, a private employee or a self-employed individual. The provisions of this section apply to all Indian citizens who are contributing to the NPS and are between the age of 18 to 60 years. This also applies to NRIs. Following are the key provisions of Section 80CCD (1):


The maximum deduction permissible for employees is 10% of their salary (basic + DA) in the previous year.
The maximum deduction permissible for other individuals, such as self-employed individuals, is 20% of the gross total income in the previous year.
The maximum limit of deductions from under 80CCD (1) is capped at Rs 1.5 lakhs for a given financial year.

A new amendment to Section 80CCD has been introduced as sub-section (1B). Under these new provisions, individuals can claim an additional deduction of Rs. 50,000/-. This is available to both salaried as well as self-employed individuals.

Thus, the maximum deduction available under Section 80CCD is Rs. 2 lakhs. Tax benefits under Section 80CCD (1B) can be claimed over and above the deductions available under Section 80CCD (1).