BANKING AFFAIRS

Detailed explanation-1: -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).

Detailed explanation-2: -Section 80CCD(1) allows a deduction of up to ₹ 1, 50, 000 for self-contributions to NPS or APY. Section 80CCD(1B) allows an additional deduction of up to ₹ 50, 000 over and above the limit of Section 80CCD(1). However, it should be noted that the same contribution cannot be claimed as deduction under both these sections.

Detailed explanation-3: -Amount of deduction under Section 80E*: There is no limit on the deduction amount. The benefit of the deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.

Detailed explanation-4: -Section 80D includes a deduction of Rs 5, 000 for any payments made towards preventive health check-ups. This deduction will be within the overall limit of Rs 25, 000/Rs 50, 000, as the case may be. This deduction can also be claimed either by the individual for himself, spouse, dependent children or parents.