Under section 80CCD (1) an individual can claim deductions for the amount that he/she has deposited in a pension account. Maximum deduction that can be claimed under this section is 10% of the salary or Rs. 1,50,000 whichever is less.
Under section 80CCD (1B) an individual can claim deductions for the amount deposited his/her NPS account. The maximum deduction that can individual can clam under this section is Rs. 50,000. Individuals contributing towards Atal Pension Yojana can also claim deductions under this section.
Under section 80CCD (2) an individual can claim deductions for the amount that he/she has contributed to the employee’s pension account. The maximum amount that can be claimed is 10% of the salary of the employee.
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