80ccd(1b): Section 80CCD (1B) provides a unique

Section 80CCD (1B) provides a unique opportunity to claim an additional tax deduction of up to ₹50,000 on contributions made to the National Pension System (NPS) Tier I account. This deduction is in addition to the ₹1.5 lakh limit under Section 80C, 80CCC, and 80CCD (1), allowing individuals to save up to ₹2 lakh annually. This blog will guide you through how to get the maximum benefit from this section and how it complements other tax-saving provisions. Understand the key differences between Section 80CCD (1) and 80CCD (1B) for NPS tax benefits. Know eligibility, limits, and regime-wise deductions. Learn how to claim Section 80CCD deductions under NPS—80CCD(1), 80CCD(1B), 80CCD(2). Check eligibility, limits, and filing tips for FY 2025-26. Key Notes: Combined Deduction Limit: The total deduction under Sections 80C, 80CCC, and 80CCD (1) is capped at ₹1,50,000, except for the additional ₹50,000 under Section 80CCD (1B). Taxability Differences: While some instruments under Section 80C (like PPF) offer tax-free returns, Sections 80CCC and 80CCD often involve taxable payouts. Employer Contributions: Section 80CCD (2) allows an additional deduction for employer contributions to NPS, which is separate from the combined limit ...