Maximum deduction for NPS in old tax regime

[Shiv_Katira]

Hello @Quicko ,
What is the maximum permissible deduction for the investment in NPS in old tax regime. Is it only INR 50,000 u/s 80CCD1B, or is it INR 2,00,000 (i.e. 1,50,000+50,000 u/s 80CCD1B)?

[Meher_Smaran]

It is 2 lks { 80C + 80CCD 1(B) }

Additional 50k is available only for Tier 1 NPS account

@Quicko , pls add if I’ve missed anything

Investing in NPS

In NPS there are two options Tier 1 and Tier 2. Tax exemption is available only if you invest in Tier 1. This also means that once invested, you can withdraw only when you reach 60 years. Now, with regard to deduction. The maximum limit of exemption is Rs. 2.00 Lakhs To answer your question, you will be eligible for deduction upto 2 lacks from all tax saving investments. Section Description Maximum Deduction 80C Tax-saving instruments and investments Up to ₹ 1,50,000* 80CCC Contr…

[neha1101]

@Shiv_Katira

is it INR 2,00,000 (i.e. 1,50,000+50,000 u/s 80CCD1B)?

It is 2 L as detailed above if you do not have any deduction such as payments towards LIC premium etc under 80C where the limit is capped at 1.5L

Income Tax Deductions List - Deductions on Section 80C, 80CCC, 80CCD and 80D...

[Quicko]

Hey @Shiv_Katira,

The combined deduction can go up to ₹2L. As most people tend to exhaust the ₹1.5L deduction under section 80C, an additional deduction of ₹50,000 is allowed for investments in NPS. But, if you do not have any other investments like EPF, ELSS, PPF that are allowed as a deduction under section 80C, you can claim the entire ₹2L (1.5L (80C) + ₹50,000 (80CCD (1b)) deduction for investing in NPS.

Moreover, as rightly mentioned by @Meher_Smaran, only NPS tier I accounts offer tax benefits.

Hope this helps!