Deduction u/s 80CCD(1B) for NPS

I invest 1.5L in PPF every year and want to know if I can invest additional 50,000 in NPS and claim it u/s 80CCD(1B). So I want to invest overall 2Lacs annually.

Is the deduction of 50,000 u/s 80CCD(1B) only available if 2Lacs is invested entirely in NPS or can I do as I said above?

I am not salaried and have not yet opened NPS account.

Hi @vivek25

Deduction of Rs. 50,000 u/s 80CCD(1B) is independent from the threshold limit of INR 1.5 Lakh [for section 80C + Section 80CCC + Section 80CCD(1)].

Individuals who are aged between 18 – 60 years as on the date of submission of his/her application are eligible for investment in NPS. Resident Individuals can open Tier I NPS account and claim the amount invested as a deduction including self-employed taxpayers.

Hope this helps. :slightly_smiling_face: