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Should 80CCD(1B) Be calculated first that 50,000 and then balance to be checked in 80CCD(1) Always??
Answers (4)
Not necessary. If you have 80C deductions for 1,50,000 already then you can claim the same under 80CCD(1B). The additional deduction of Rs. 50,000/- under Section 80CCD(1B) is available to assess over and above the benefit of Rs. 1.50 Lakhs available as a deduction under Sec 80CCD(1). Thereby, raising the maximum limit of exemption to Rs. 2.00 Lakhs with Section 80CCD(1) + Section 80CCD(1B). For instance, consider yourself as an individual who is making investments of Rs. 1,50,000 under Section 80C (PPF, Tax Saver FD , ELSS etc). Now, you have decided to contribute Rs. 70,000 per annum towards the NPS. You can now claim a deduction of Rs. 2.00 Lakhs, i.e. Rs. 1.50 Lakhs under Sec 80C and Rs. 50,000/- under Section 80CCD(1B).
shalu Muthukumar
Not necessary. If you have 80C deductions for 1,50,000 already then you can claim the same under 80CCD(1B). The additional deduction of Rs. 50,000/- under Section 80CCD(1B) is available to assess over and above the benefit of Rs. 1.50 Lakhs available as a deduction under Sec 80CCD(1). Thereby, raising the maximum limit of exemption to Rs. 2.00 Lakhs with Section 80CCD(1) + Section 80CCD(1B). For instance, consider yourself as an individual who is making investments of Rs. 1,50,000 under Section 80C (PPF, Tax Saver FD , ELSS etc). Now, you have decided to contribute Rs. 70,000 per annum towards the NPS. You can now claim a deduction of Rs. 2.00 Lakhs, i.e. Rs. 1.50 Lakhs under Sec 80C and Rs. 50,000/- under Section 80CCD(1B).
Thank you :) If suppose u/s 80CCD(1) employee contribution is say 70,000 and 10% of Salary is 50,000 so u/s 80CCD(1) it's restricted to 50,000 so instead assessee can claim 50k dedn in 80CCD(1B) and balance in 80CCD(1) right???