Section 80CCD(1B)
Extra ₹50,000 tax deduction over and above the ₹1.5L 80C cap — exclusively for voluntary NPS Tier 1 contributions in the old tax regime.
Definition
Section 80CCD(1B) provides an additional ₹50,000 deduction for voluntary contributions to NPS Tier 1, exclusively. This deduction is over and above the ₹1.5L cap under 80C — taking total deductions in the old regime to ₹2 lakh combined for someone using both.
Only contributions to NPS Tier 1 qualify (not Tier 2). Employer contributions under 80CCD(2) are separate and unaffected.
Example
₹50K in NPS Tier 1 at 30% slab → saves ₹15,600 in tax annually, plus the ₹50K compounds in NPS at expected ~10% for retirement.
Calculators that use this
NPS
Project your NPS corpus at retirement plus the monthly pension after the mandatory 40% annuity purchase. 60% of corpus is tax-free lump sum at age 60.
Open calculator80C Saver
Calculate the actual tax saved from your 80C, 80CCD(1B) NPS, and 80D health insurance deductions across all old-regime tax slabs.
Open calculatorNPS vs PPF
Compare expected maturity from NPS Tier 1 and PPF for the same annual contribution and tenure. Factors NPS's mandatory 40% annuity treatment.
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