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<h1>Clarification on Section 80 CCD: Deduct 10% of salary for pension contributions; total cap with Sections 80 C, 80 CCC at Rs. 1 lakh.</h1> The circular clarifies deductions under Section 80 CCD for contributions to pension schemes. Individuals can deduct 10% of their salary or gross total income for contributions made in the previous year. If the Central Government or any employer contributes to an employee's pension scheme, the employee can deduct up to 10% of their salary. Salary includes dearness allowance but excludes other allowances and perquisites. The total deduction under Sections 80 CCD, 80 C, and 80 CCC is capped at Rs. one lakh. This guidance is directed to all relevant government departments and officials.