Tax
Section 80CCD(1B)
Also known as: 80CCD(1B), NPS Tax Deduction
Additional ₹50,000 tax deduction for NPS contributions beyond 80C limits.
Detailed Explanation
Section 80CCD(1B) provides an additional deduction of up to ₹50,000 for contributions to National Pension System (NPS) Tier I accounts. This deduction is over and above the ₹1.5 lakh limit under Section 80C, making it particularly valuable for high earners who have maxed out other tax-saving investments. The contribution must be made to NPS Tier I account and the deduction is available under both old and new tax regimes.