ADDITIONAL DEDUCTION OF RS.50,000 IN NPS

[abbas mukhi]

DEAR EXPERTS,

IN BUDGET 2015, ADDITIONAL DEDUCTION UPTO RS.50,000 WAS ALLOWED AS DEDUCTION (SECTION 80 CCD (1B)

AS PER SECTION 80CCD (1) EMPLOYEE IS ALLOWED TO GET DEDUCTION UPTO 10% OF HIS SALARY IN THE PREVIOUS YEAR SUBJECT TO LIMIT OF RS.1,00,000.

MY QUERY :-

WHETHER ADDITIONAL DEDUCTION UPTO RS.50,000 (AS PER SECTION 80CCD (1B) IS ALLOWED ONLY TO THOSE EMPLOYEE WHO INVESTED UPTO MAXIMUM LIMIT AS MENTIONED IN SECTION 80CCD(1) OR ADDITIONAL DEDUCTION OF RS50,000 IS SEPARATE FROM DEDUCTION UNDER SECTION 80CCD (1) ??

IN OTHER WORDS, WHETHER IT IS POSSIBLE TO INVEST IN PPF RS.1,50,000 AND RS.50,000 IN NPS TIER 1 A/C (AS PER SECTION 80CCD (1B)

AI Summary

Additional NPS deduction: whether it is separate from the employee deduction and allows simultaneous PPF claims. Query concerns whether the Budget introduced additional NPS deduction operates as a distinct, additive deduction separate from the existing employee NPS deduction tied to salary and its cap, and whether an individual may claim other permitted deductions (such as PPF contributions) up to their limits while also claiming the separate additional NPS deduction for Tier I contributions.