I have a doubt in understanding 80ccd excemption for NPS which allows additional 50k tax saving benefit.
So my question is lets say i have exhausted 80c(1 lac ppf+ 50k lic) so now if i invest 50k on nps will i get the benefit of total 2lacs?
Thanks for your clarification
Raghu-Yes, you can. From this FY, whatever you invest in Tier 1 up to Rs.1,50,000 will be considered under Sec.80CCD(1), which is part of Sec.80C, where the maximum deduction allowed is Rs.1,50,000.
Apart from this you can invest up to Rs.50,000 under Section 80CCD(1B). So the combined benefit under NPS will be Rs.2,00,000 i.e Sec.80CCD(1)+Sec.80CCD(1B).
Thanks Basu, but still my doubt is not cleared 🙁 request you to consider my example below:Ppf: 1lacLic policy: 50kSo for this first time il put 50k into tier 1 nps account.So in this case the 50k is considered under 80ccd(1) or 80ccd(1b)?
I too have one doubt regarding NPS. Suppose Case 1) My Contributions are 50 K in PPF 50 K in ELSS 50 K in LIC and 50 K in NPS. Will i be getting 2 Lacs Tax exemption ?Case 2) I need to compulsory have some amount of MY contribution towards NPS tier 1 in 1.5 Lacs Slab in order to claim for additional 50 K Tax exemption??
Ajinkya-1) Yes, you will get Rs.2 lakh exemption. But the additional Rs.50,000 investment in NPS must be shown in Sec.80CCD(1B). There is no such restrictions mentioned to claim deduction of additional Rs.50,000.