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

₹6,00,000

Dearness Allowance

₹3,00,000

Maximum Deduction under 80CCD

₹1,50,000

Maximum Deduction under 80CCD 1(B)

₹50,000

Maximum Deductions under 80CCD (2)

₹90,000

Total Deduction

₹2,90,000

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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