Government of India Ministry of Finance Office of the Principal Chief Commissioner of Income Tax, Tarniluad Mahatma Gandhi Road, Chennai 600 0:34 ‘Telephone: 044-28338014 | Fax No: 044-20330503 No. Ciarifcation/PRO/2017-16 Date: 11.04.2017 ee .Padasalai.Net ‘Trichy Dt, Pin: 6213. Sir, Sub: Clarif tion - Deduction u/s BOCCD (1B) of Income Tax Act, 1961 - reg Ref: Your petition dt. 02.02.2017, Please refer to your petition de 02.02.2017, seeking clarification regarding claiming of ‘eduetion u/s 80CCD(18) for eontribution made by you towards Contributory Pension Scheme (CP), 2 nryour petition you have sought following clarification 4. Both NPSand CPS are same or different. NPS fs governed by the Government of India Notification in F.NOS/7/2003-ECR & PR de. 2.122003 and CPS ts governed by Government of ‘Tamilnadu, Finance (Pension) Department 6.0, No.259 at. 06.08.2003, CPS amount can be deducted unuler seetion BOCCD(1) and also BUCCD(18) of IT Act ‘The amount contributed towards CPS should be deducted either under GOCCD(1) or 80CCD(1B) only. ‘The deduction under section 8OCCD(1) should not exceed 10% of is salary in the previous year ‘The deduction u/s BOCCD(AB) shall not exceed Rs.50,000/- provided that no deduction shall be allowed in respect of the amount on which deduction has been claimed and allowed unider section 8OCCD(1). lil, CPS amount partially deducted under seetion BOCCD(1) and also BOCCD(1B) of IT Act ‘The deduction under section BOCCD(1) should not exceed 109% of ‘his salary in the previous year. The deduction u/s GOCCD(1B) shall not exceed Rs.50,000/- provided! that no deduction shall be allowed in respect of the amount on which deduction has been ‘aimed and allowed under section 8UCCD (1), \. Can Employer's contribution towards CPS can be deducted under suction BOCCD(2) of ITAct. This amount can be added (n salaries or not. ‘As per Section 17 of Income Tax Act, the contribution made by the employer under ‘new pension scheme should be included as income under the head salary. ‘The deduction under section GOCCD(2) is allowed and should not exceed 10% of employee's salary in the previous year. Yow Stay, Woe (Dhanaisisim; Ravisumar) Income Tax Officer (HQ) (PR) fo the Pr. Chief Commissioner of Incorne Tax, Tamilnadu Chennaiarate freers sre (pe0) 18 greener eRar wee vitt fis ant ag feeeit—110016 KENDRIYA VIDYALAYA SANGATHAN(HQ), 18, INSTITUTIONAL AREA SHAHEED JEET SINGH MARG, NEW DELHI-110016 ‘TEL-26858570 /FAX-26514179 F.No.11011/URTU2012/KVS GudgesyPr/ "77 Dated:. 4.10.2012 With reference to RTI ID-9104 of Ms. Bhumika Bhaysar, regardin Children education allowance desired information is as under: SLNo. | Point Information 1. Whether KVS has prescribed or provided |No specific proforma is any particular proforma for their employees | prescribed for the purpose. to claim CEA for their children? If yes | However existing proforma may be used with required provide the same, charges. 2. To claim the reimbursement of CEA,|It is to be self certified by whether any type of verification or | employee. certification is required from the school in which the child is studying? NOTE: In case the applicant is not satisfied, the applicant may prefer first appeal to Additional Commissioner (Admn.), Kendriya Vidyalaya Sangathan, 18 Institutional Area, Shaheed Jeet Singh Marg, New Delhi-16 within 30 days as per provision of RTI- 2005. oer Joint. Commissioner (Pers.) & (Fin.) &CPIO Ms Bhumika Bhaysar 414, Veena Nagar, Hiran Magri, Sector-6, Udaipur, Rajesthan-313002 1, PECell, KVS (H.q,) ot Joint-Commissioner (Pers.) & (Fin.) &CPIOSection 80CCD(1) Employee contribution up to 10% of basic salary and dearness allowance (DA) up to 1.5 lakh is eligible for tax deduction. This contribution along with Sec 80C has 1.5 Lakh investment limit for tax deduction. Self employed can also claim this tax benefit. However the limit is 10% of their annual income up to maximum of Rs 1.5 Lakhs Section 80CCD(2) Employer's contribution up to 10% of basic plus DA is eligible for deduction under this section. Employer's contribution is an additionaldeduction as it not part of Rs 1.5 lakh allowed under Section 80C It is also beneficial for employer as it can claim tax benefit for its contribution by showing it as business expense in the profit and loss account. Self employed cannot claim this tax benefit. Section 80CCD(1B) , Additional exemption up to Rs 50,000 in NPS is eligible for income tax deduction. Introduced in Budget 2015, fro FY 2015-16 Taxpayers in the highest tax bracket of 30 per cent can save Rs. 15,000 by investing Rs. 50,000 in the NPS. Those in the 20 per cent tax bracket can save aroundRs. 10,000, while people in the 10 per cent tax bracket can save Rs. 5,000 per year by investing in the NPS. The additional tax benefit of 50000 is over and above the benefit of 1.5 Lakhs which can be claimed as a deduction under Section 80CCE. It is irrespective of the type of employment. So, a government employee, a private sector employee, self employed or an ordinary citizen can claim benefit of Rs 50,000 under Section 80CCD(1B). Therefore, the total tax benefits that can be claimed for NPS under Section 80CCD(1) + Section 80CCD(1B) equals to 2 Lakhs for financial year. If Employees have savings Rs. 1,50,000 under 80C excluding NPS Deductions, Then the Employee can show their NPS Deductions, under 80 CCD(1B), which is over the 1,50,000 Limit.Government of India Ministry of Finance Office of the Principal Chief Commissioner of Income Tax, Tamilnadu: Mahatma Gandhi Road, Chennai 600 034 Telephone: 044-28338014 Fax No: 044-28338583 C. No. Clarification/PRO/2016-17 Date: 14.02.2017 To Dr. $ Sandeep Sir. Sub: Clarification - Deduction u/s 80CCD (18) of Income Tax Act, 1961 - reg. Ref: Your email dt. 12.02.2017, Please refer to your email dt. 12.02.2017 seeking clarification regarding claiming of deduction u/s 80CCD(1B) for contribution made by you towards Contributory Pension Scheme (CPS) 2. It is hereby clarified that a State Government employee who have investments/savings of Rs.1.50.000/- and also made contribution towards CPS (NPS). the Government employee can claim deduction u/s 80C upto Rs.1.50,000/- for investments/savings and also can claim deduction u/s 80CCD(1B) for an additional amount of Rs,50,000/- towards contribution made towards CPS (NPS). It may be noted that tax deduction on CPS (NPS) is available only for Tier-1 account. Yours faithfully. pe (Dhanalakshmi Ravikumar) Income Tax Officer (HQ) (PR) O/o the Pr. Chief Commissioner of Income Tax. Tamilnadu Chennaifont 30012008 Moana my fw RTL/201 Name af the Applicant Sh. Sohan Lal | Address | 5/0 Sh. Sin Ram, Near DFO. Office Una ward No, ~9, Dist-Una, 174303 Date of receipt ef application | 22.01.2014 Lin this office Ty00L2018 Order u/s 7LL) of the RTLAct. 2005 ‘The point wise information being sought by you is as follows: SNe | Information Sought 4 Reply . Henplayee have saving Rs 150,000/- u/s Yes 80 ¢ excluding CPS deduction, Can t Incumbent avail Rs 50,000/- u/s ia. CCD (18), the anount which was deducted —— toward CPS/NPS? } |? Tifthe employee have saving less than 15 Lad Yes saiving in HO cand exceed As 50000 toward | CPS/NPS Con incumbent Split the CPS/NPS: atmount in 80 CCDL1H) 3 With above the RTT application is accordingly disposed otf f the Right to Information Act, 200% Further appeal, if any desired against this order May be filed betore the First Anpellate Authueaty Addl, CET (Hay Adin |. Gye tine Chie Commissioner of Income tax. 4,0. Hegion, Railway Board Hailing, The Mali, Shimla-17 1003. Ws Nea (Sukhdev Singh Mangat | ‘Asst. Commissioner of Income Tax (Hg. }(Admin.) Shimlaa 4) 5090 DShrodgut acs 4 es eh tl eas tara stents > aa GOVERNMENT OF INDIA, Office of the TOT AT MTT HEAT . Pr. Chief Commissioner of Income Tax. Ww ataz i, Andhra oe ‘& Telangana. : *B’ Block. 9" Floor, IT Towers, oiuweer a aetanen, “a cores, at a 10-2-3, A.C.Guards, Hyderabad — $00 004 aa, sree Fra Tel.No.040-23425470, to24, 0 & nba, Bxmze00 004 FAX No, 040-23240412 F.No. Pr.CCIT/Tech/67/2015-16 Dated : 12.02.2016 Ge ‘Sri P.Sarotham Reddy, ive Recognised Teachers Union TS H.No.3-5-1039, Narayanaguda, Hyderabad-500 029. Sir, ‘Sub : CPS (NPS) = Clarification on BCCD(1B) - Furnishing of - Reg. Ref: Your letter in No.28/PRTU/2016, dated 01.02.2016. Please refer to the above. 2. Lam directed to furnish the clarification sought by you, as under: 1] If employees have savings Rs.1,50,000/- under 80C Yes excluding CPS deduction, can the inzumbent avail Rs.50,000/- under 80CCD(18), the amount which was deducted towards CPS (NPS) ? 2 |If the employee have less than 1.5 lakh savings In Yes B0C and exceeds Rs.50,000/- towards CPS(NPS), can incumbent split the CPS(NPS) amount in S0CCD(1) and 80CCD(1B) ? Yours sincerely, (s.vua¥a Kuma) Income-tax Officer (H.Qrs)(Tech), O/o.Pr. CCIT, AP and Telangana, HyderabadNPS Investment & Income Tax Benefits RTT Ag yr SOCCD(1) AF & socco(2) EMR a) = * salaried / Self-employed * Salaried > 10% Basic + DA * Self-employed ~ 20% of Gross income * Up to maximum Rs 1.5 lakh SoC + SoCCD (1) put together * Salaried / Self-employed * Maximum Tax deduction Rs 50,000 * Over and above 80C Rs 1.5 lakh limit St) Ce ty Re Re od eae Loy (eee ReLakhs.comNPS Tax Benefits while Investing (for Tier 1 Account) (www.basunivesh.com) NPS Tax Benefits while Investing (for Tier 2 Account)Taxdeductions offered by NPS Maximum Mandatory deduction from Salary for calilelqy | © S0CCD (1) retirement savings Voluntary deduction from salary put in NPS UE eh by employer basic salary 8OCCD (2) Voluntary contribution by individual in NPS sss} ) SOCCD (1b)File No.FINO2-18069/37/2019-H SEC-DTA GOVERNMENT OF ANDHRA PRADESH DIRECTORATE OF TREASURIES AND ACCOUNTS::IBRAHIMPATNAM Memo No: FINO2-18069/37/2019-H Sec-DTA, 13/02/2020 Sub: DTA - CPS(NPS)— Income Tax - Clarification on 80CCD(1B) - Reg. Ref: 1) F.No. PR.CCIT/Tech/67/2015-16 St.12-02-2016 of Income Tax Officer (H.Qrs) (Tech) Ofo Pr.CCIT, AP and Telangana, Hyderabad. 2) Representation Dt. 13-02-2020 of the President, APCPSEA. &8& While communicating copy of the reference 1 = DDs of the DTs in the state are hereby informed that, the Income Tax Officer (| (Tech) O/o Pr.CCIT, AP and Telangana, Hyderabad have clarified that,if the in having savings of Rs 1,50,000 under 80C, excluding CPS deduction , the inglbint can avail RS. 50,000/- which is deducted towards CPS (NPS)under 80CCD( It was also clarified therein Prcinbstt can split the CPS(NPS) amount in 80CCD(1) and 80CCD(1B) if the er have less than Rs.1,50,000)- savings in 80C and exceeds RS. 50,000/- one S). They are tnertestPuested to follow the above instructions for strict compliance. Signature Ni ified Pigially signed t ere [ADA LAKSHMI HANUMANTHA = RAO BEZWADA LAKSHMI DIRECTOR ENCL: aa To All the Deputy Directors of District Treasuries in the state.GOVERNMENT OF ANDHRA PRADESH DIRECTORATE OF TREASURIES AND ACCOUNTS::IBRAHIMPATNAM Memo No° FINO2-18069/37/2019-H Sec-DTA, 13/02/2020 ‘Sub; DTA - CPS(NPS) - income Tax - Clarification on B0CCD( 1B) - Reg Ref: 1) F.No. PR.CCIT/Tech’67/2015-16 St.12-02-2016 of Income Tax Officer {H.Qrs) (Tech) Ofo Pr.CCIT, AP and Telangana, Hyderabad. 2) Representation Dt. 13-02-2020 of the President, APCPSEA. BBB While communicating copy of the reference 1" cited.ail the DDs of the OTs in the state are hereby informed that, the Income Tax Officer (H.Qrs) (Tech) Olo Pr CCIT, AP and Telangana, Hyderabad have clarified that.if the individual having savings of Rs 1,50,000 under 80C, excluding CPS deduction . the incumbent can avail RS. 50,000/- which is deducted towards CPS (NPS)under 80CCD(1B). 1 was also clarified therein that the incumbent can spit the CPS(NPS) amount in 80CCD(1) and 80CCD(18) if the employee have less than Rs.1,50,000/- savings in BOC and exceeds RS. 50,000/- towards CPS(NPS). They are therefore requested to fotlow the above instructions for strict compliance. Signature No Dighal by [ADA LAKSHMI \NUF HA Date: 2020.02.13 1: 45 1ST Reason: Appa HANUMANTHA — RAO BEZWADA LAKSHMI DIRECTOR ENCL: To All the Deputy Directors of District Treasuries in the state.