1

This link says following:

Under Section 80CCD (1b): In budget 2016, the government had introduced additional tax benefit for investment up to Rs 50,000 in NPS. If the taxpayer contributes more than Rs 1.5 lakh to the NPS in a year, the amount in excess of Rs 1.5 lakh can be claimed as a deduction under the new Section 80CCD(1b).

Does this means that to save full 50000 from tax, I have to invest 200000 all in NPS, that is, meet full 150000 limit of 80C only through NPS and then only excess 50000 will be considered under 80CCD(1b)? Or can I can meet 150000 limit of 80C by some other means like NSC, ELSS etc. and additional 50000 invested in NPS will be considered 80CCD(1b)?

0

can I can meet 150000 limit of 80C by some other means like NSC, ELSS etc. and additional 50000 invested in NPS will be considered 80CCD(1b)?

Yes you can invest in any 80C upto 1.5 lacs. It need not be in NPS. You can do only 50,000 in NPS and claim deduction in 80CCD

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.