I contribute to section 80C for 1.5lakhs per year by investing in PPF, NSC. Can I contribute to NPS for 50,000 and claim it under 80ccD? or should I contribute the initial allowed investment of 1.5lakhs under NPS only to avail the extended benefit of 50,000 deduction?
Contributions made towards Tier 1 are tax deductible and qualify for deductions under Section 80CCD(1) and Section 80CCD(1B). This means you can invest up to Rs. 2 lakh in an NPS Tier 1 account and claim a deduction for the full amount, i.e. Rs. 1.50 lakh under Sec 80CCD(1) and Rs. 50,000 under Section 80CCD(1B).