NPS Tier-1 contribution from salary per year > 60000
NPS Tier-1 contribution from company per year > 60000
How much amount is counted for 80CCD? Is it just salary or also the government contribution?
Consider the following scenarios - Fixed amount is amount of NPS contribution.
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?