9 Mar 2018

Section 80CCD Deductions

Finance feed by:

RK & Associates

CA Firm    •    100% (2 votes)   •    15 Year 9 Month  experience

"This section allows deduction from gross total income for contributions made to pension schemes of the Central Government".

As per section 80CCD (1), the deduction will be allowed for contributions made to notified pension scheme if the same does not exceed: 
a) Ten per cent of the salary in case of an employee, or; 
b) Twenty per cent of the gross total income in case of self-employed 

Apart from the above 2 constraints, the total amount claimed as a deduction from gross total income under both Section 80C and section 80CCD cannot exceed the notified limit of Rs 1.5 lakh. 

However, there is an additional tax benefit available under this section which is over and above the limit of Rs 1.5 lakh. 

As per section 80CCD (1B), an additional deduction of a maximum of Rs 50,000 from gross total income will be allowed to assessee on the basis of certain further conditions.

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