TaxTMI 
TaxTMI 
Deduction in respect of contribution to pension scheme of Central Government- Section 80CCD
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....ny other individual towards National Pension Scheme (NPS) and Atal Pension Yojana (APY) is deductible in the year in which contribution is made. * Employees: Deduction up to 10% of salary in the previous year. * Others (including self-employed): Deduction up to 20% of gross total income in the previous year (increased from 10% by the Finance Act, 2017, w.e.f. 01-04-2018). * Maximum limit of deduction is Rs. 1,50,000 (see Section 80CCE). Explanation: "Salary" includes dearness allowance (if the terms of employment so provide), but excludes all other allowances and perquisites. Section 80CCD(1B) [Additional deduction] Inserted by the Finance Act, 2015 (w.e.f. 01-04-2016), sub-section (1B) provides an additional deduction o....
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....), * Contribution by an employer towards NPS is deductible in the hands of the concerned employee in the year in which contribution is made. * Limit up to 14% where such contribution is made by any other employer. [ Inserted vide Finance (no. 2) Act, 2024 ] Taxability of amount received Section 80CCD(3) * The following amount shall be taxable, in the year of receipt, * (a) on account of closure or his opting out of the pension scheme * (b) as pension received from the annuity plan purchased or taken on such closure or opting out * The amount received by the nominee, on the death of the assessee, under the circumstances referred to in clause (a), shall not be deemed to be the income of the nominee. * [The....
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....to in section 80CCD, on partial withdrawal made out of the account of the minor, as per the terms and conditions, specified under the Pension Fund Regulatory and Development Authority Act, 2013 and the regulations made thereunder, to the extent it does not exceed twenty-five per cent. of the amount of contributions made by him. Section 10(12BA) inserted vide Finance Act, 2025 w.e.f. 01.04.2025 ] Restriction on Double Deduction [section 80CCD(4) ] * From 01.04.2026 :- Where any amount paid or deposited by the assessee in his account or the account of a minor has been allowed as a deduction under section 80CCD(1) or (1B) no deduction with reference to such amount shall be allowed under sect....