Is 80ccd2 part of 80C?

The Form-16 given by the employer will contain all the details of the gross salary paid to any employee and amount of deduction he/she is eligible to claim under section 80CCD (2) and excess contribution which will be taxable in the hands of an employee, if any.”

What is deduction u/s 80CCC?

Under Section 80CCC of Income Tax Act 1961, an individual can claim tax deduction for contributions made to certain pension funds. The tax benefit is only for payments in the form of premium for any annuity plan of LIC or any other insurer. The maximum deduction that can be claimed under this section is Rs. 1,50,000.

What is the difference between 80ccd1 and 80ccd2?

80CCD (1) deals with the investment or contribution made by an employer to such a pension scheme whereas section 80CCD (2) deals with employer contribution to an employee’s pension account. Section 80CCD deals with a tax deduction and reliefs given for contributions made to the pension fund account.

How can I claim 50000 in NPS?

To encourage investment in NPS, Section 80CCD(1B) of the Income-tax Act allows an additional deduction of Rs 50,000 over and above the Rs 1.5 lakh available under Section 80CCE. *It is assumed that contribution to NPS by the employee does not exceed 10% of the employees’ salary.

What are the deductions under Section 80CCD ( 2 )?

Section 80CCD (2) of Income Tax Act Employer’s can also claim for additional deduction for contributing towards employee’s pension account of up to 10% of the salary of the employee. There is no specific ceiling on this deduction. Provisions under this section come into effect when an employer contributes towards the employee’s NPS.

Can a self employed person claim Section 80CCD ( 2 )?

Deduction under section 80CCD (2) is not allowed to self employed individual because there is no any employer-employee relationship exist. One More thing is to be noted, Contribution made by employer under section 80CCD (2) firstly included in salary of the employee in previous year in which that contribution is made by the employer.

Which is an example of 80CCD ( 2 )?

80CCD (2) relates to the deduction of employer’s contribution to New Pension Scheme (NPS). This contribution is firstly added in salary income and later allowed as deduction upto maximum of 10% of salary (14% in case of government employees) Example: Mr. Jewel earns a basic salary of Rs. 14,00,000 in P.Y. 2020-21.

Which is the maximum deduction for NPS you / s 80CCD?

Deduction for employer’s contribution to NPS u/s 80CCD (2) is allowed upto maximum of 10% of basic salary + DA. Therefore, only Rs. 1,40,000 is allowed as deduction. This deduction is available for both the options. It is clear from the above example that for employer’s contribution, there is no difference in both alternatives.