Clarifications for CPS Employees on 80CCD(IB) Deductions for CPS (NPS)

Clarifications for CPS Employees on 80CCD(IB) Deductions for CPS (NPS). Vide F No. PR CCIT/Tech/67/2015-16 Dated 12.2.2016 Income Tax Department has given clarification regarding CPS Deductions under 80 CCD (IB) and for CPS (NPS) Employees. The Important Clarifications useful when the CPS Deductions exceeds Rs.50000/- and also when the Total Deductions exceeds 1,50,000/- excluding CPS Deductions. The Details and copy are given below.

Clarifications for CPS Employees on 80CCD(IB) Deductions for CPS (NPS)

The Clarifications given are as follows:
  1. If Employees have savings Rs. 1,50,000 under 80C excluding CPS Deductions, Then the Employee can show their CPS Deductions, under 80 CCD(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.
  2. 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). The Copy is given below.

5 comments:

  1. THANKYOU VERY MUCH IT GIVES CLEARITY.

    ReplyDelete
  2. Sir the deduction for CPS employees is not allowed during current Fin year (2015-16) duly clarifying that it will applicable w.e.f. 1-4-2016 only.may i get any clarification sir? Good night
    From A.Balakrishnaiah, JL GJC, Veldurthy, Kurnool dt. 9441528049

    ReplyDelete
  3. Sir I've submitted my IT returns, tax was deducted I did not included CPS now how to claim for it and get back my deducted amount, help me

    ReplyDelete