80ccd(1b): What is Section 80CCD (1B)

What is Section 80CCD (1B)? Section 80CCD (1B) is a provision under the Income Tax Act, 1961 in India that allows you to claim an additional deduction of up to ₹50,000 from your taxable income for contributions made to the National Pension System (NPS). This NPS tax benefit is over and above the ₹1.5 lakh limit available under Section 80C. Section 80CCD (1B) provides an additional deduction of ₹50,000 for contributions made by the taxpayer to the National Pension System (NPS), over and above the deductions available under Section 80C and 80CCD (1). This deduction is not available under the new regime u/s 115BAC. However, if a person wishes to claim deduction in excess of Rs. 150,000, he/she can avail the deduction of Rs. 50,000 over and above the Rs. 150,000 aforesaid through investing in the notified pension schemes u/s 80CCD. The notified schemes are governed by the National pension system trust. Learn how to claim Section 80CCD deductions under NPS—80CCD(1), 80CCD(1B), 80CCD(2). Check eligibility, limits, and filing tips for FY 2025-26.