Clarification on Income Tax Section 80CCD(1B) for CPS Employees

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Clarification on Income Tax Section 80CCD(1B) for CPS Employees :Income Tax Department has been issued clarification on Section 80CCD(1B) on 12.06.2016.So CPS Employees can show their CPS Deductions, Clarification on Income Tax Section 80CCD(1B) for CPS Employees,Clarification on Section 80CCD(1B) for TS AP CPS Employees,CPS Employees Additional Benefit in Income Tax on 80CCD(IB) Deductions for CPS (NPS) Clarification 2015-16,Clarification on Income Tax Section 80CCD(1B) for CPS Employeesunder 80CCD(IB), which is over the 1,50,000 Limit details is as follows

Employees have savings Rs. 1,50,000 under 80C excluding CPS Deductions, Then the Employee can show their CPS Deductions, under 80CCD(IB), which is over the 1,50,000 Limit. This is useful for the Senior Employees whose Total Savings excluding CPS Deductions under 80C are more than 1.50 Lakhs.

If the Employee have less than 1.5 Lakh savings in 80C and exceeds 50,000 towards CPS (NPS), then the Employee can split their CPS Amount to 80CCD(1) and 80CCD(IB).

Clarification on Income Tax Section 80CCD(1B) for CPS Employees

Clarification on Income Tax Section 80CCD(1B) for CPS Employees
Clarification on Income Tax Section 80CCD(1B) for CPS Employees
Individuals contributing to NPS would Clarification on Income Tax Section 80CCD(1B) for CPS Employees,Clarification on Section 80CCD(1B) for TS AP CPS Employees,CPS Employees Additional Benefit in Income Tax on 80CCD(IB) Deductions for CPS (NPS) Clarification 2015-16enjoy tax benefits on their contributions as under:
  1. Tax deduction up to 10% of Salary Clarification on Income Tax Section 80CCD(1B) for CPS Employees,Clarification on Section 80CCD(1B) for TS AP CPS Employees,CPS Employees Additional Benefit in Income Tax on 80CCD(IB) Deductions for CPS (NPS) Clarification 2015-16(Basic + DA) under Section 80 CCD(1) within the overall ceiling of 1.5 Lakh under Sec 80 CCE
  2. NPS also reduces your tax liability by an additional 50,000/- under section 80CCD (1B) per assessment year (applicable from FY 2015-16/AY 2016-17)
  3. 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. Therefore, the total tax benefits that can be claimed for NPS under Section 80CCD(1) + Section 80CCD(1B) equals to 2 Lakhs for this financial year.
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Clarification on Income Tax Section 80CCD(1B) for CPS Employees Clarification on Income Tax Section 80CCD(1B) for CPS Employees Reviewed by Tteachers on Sunday, February 15, 2015 Rating: 5

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