1

Conditions:
NPS Tier-1 contribution from salary per year > 60000
NPS Tier-1 contribution from company per year > 60000

Question 1:

How much amount is counted for 80CCD? Is it just salary or also the government contribution?

Question 2:

Consider the following scenarios - Fixed amount is amount of NPS contribution.

Scene 1:
Invest in NPS for > Rs.60K. Invest in PPF/ELSS/Insurance for Rs. 1.5 Lakhs You get Rs.2 Lakh tax benefit, rest 10K investment doesn't get any rebate.

Scene 2: Invest in NPS for > Rs.60K. Invest in PPF/ELSS/Insurance for Rs. 1.4 Lakhs You get Rs.2 Lakh tax benefit. Total NPS is utilised.

My question is whether scene 2 is possible or not? Do I have to invest in PPF/ELSS/Insurance or whatever 80C permits for full Rs. 1.5 Lakhs and only then I'd get to use extra tax benefit of Rs. 50K or can I reduce my PPF/ELSS/Insurance to fit in NPS contributions?

0

Only your contribution is counted towards 80CCD.

Both scene 1 and 2 are possible. You can choose based on convenience

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