Section 80CCD of Income Tax Act

Categories in Section 80CCD of Income Tax Act

80CCD Eligibility: Can You Claim the Tax Deduction?

Maximum Deduction Under Section 80CCD: How Much Will You Save?

Let's make it easier for you to understand with the help of an example:

Suppose your basic salary is worth ₹6,00,000. You earn another ₹3,00,000 as dearness allowance. Now the 80CCD calculation stands at:

Basic Income


Dearness Allowance


Maximum Deduction under 80CCD


Maximum Deduction under 80CCD 1(B)


Maximum Deductions under 80CCD (2)


Total Deduction


In the case of 80CCD (2), the savings rate depends on the income tax rate applicable to your salary.

What Does a Financial Expert Say on 80CCD (2) Employee Tax Savings?

80CCD of Income Tax Act: Conditions You Need to Look for

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