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. AP Govt Directorate of Treasuries and Accounts has clarified vide  Memo No: FIN02-18069/37/2019-H Sec-DTA, 13/02/2020 Clarification on 80 CCD IB

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.

AP Govt Directorate of Treasuries and Accounts has clarified vide  Memo No: FIN02-18069/37/2019-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) O/o Pr.CCIT, AP and Telangana, Hyderabad.
  • 2) Representation Dt.13-02-2020 of the President, APCPSEA
  1. While communicating copy of the reference 1 st cited,all the DDs of the DTs in the state are hereby informed that, the Income Tax Officer (H.Qrs) (Tech) O/o 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). 
  2. It was also clarified therein that the incumbent can split the CPS(NPS) amount in 80CCD(1) and 80CCD(1B) if the employee have less than Rs.1,50,000/- savings in 80C and exceeds RS. 50,000/- towards CPS(NPS). 
  3. They are therefore requested to follow the above instructions for strict compliance.

8 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
  4. can you provide a clearer scan of the letter, as it will be usefull for other departments also.

    ReplyDelete
  5. Can you provide me in PDF. its better for me to used. 200-150 dumps

    ReplyDelete
  6. zakir bhai ! my total savings under 80c are rs.147119/- below 150000/-
    my cps contribution is rs. 64983/-
    can u plz let me know how can i spilt my CPS amount into 80ccd1 and 80ccd1b

    ReplyDelete