Sunday, 1 March 2015

Additional Income Tax Exemption

Additional Income Tax Exemption under Section 80 CCD (1) for contribution in NPS announced in Budget 2015-16

Apart from increase in Income Tax exemption limit under Section 80 D for Health Insurance Premium and enhanced exemption limit for Transport Allowance, Salaried Employees coming under NPS will get additional Income Tax Exemption in the Financial Year 2015-16, if they contribute in excess of Rs. 1,00,000 in NPS.
Section 80 CCD (1) : Provision meant for deduction of own contribution in NPS from total income. Limit provided under this Section has been increased from Rs.1,00,000/- to Rs. 1,50,000/-
Finance Bill 2015-16 provides that a tax payer can avail Income Tax Exemption under Section 80 CCD(1) by way of deduction of contribution made by him/her in National Pension System (NPS) up to Rs. 1,50,000.