Vide F No. PR CCIT/Tech/67/2015-16
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 Clarifications given are as follows:
**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.
**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).
**Click here to download the Clarification Order