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About this tool
Work out the extra Rs 50,000 NPS deduction under section 80CCD(1B), over and above the Rs 1.5 lakh 80CCE limit, and the tax it saves.
Section 80CCD(1B) of the Income-tax Act, 1961 allows an extra deduction of up to Rs 50,000 for your own contribution to an NPS Tier-I account, and this calculator shows how much of that extra Rs 50,000 you actually get. It splits your contribution between 80CCD(1) — which shares the Rs 1,50,000 aggregate ceiling of section 80CCE with 80C and 80CCC, and is separately capped at 10% of salary or 20% of gross total income — and 80CCD(1B), which sits outside both limits. Built for salaried and self-employed taxpayers on the old regime who want to know whether topping up NPS is worth it.
Open NPS 80CCD1B Extra Deduction Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Shows what falls under 80CCD(1) inside the Rs 1.5 lakh cap and what qualifies for the extra Rs 50,000.
Uses 10% of basic plus DA for salaried filers and 20% of gross total income for everyone else.
Converts the extra deduction into rupees of tax saved at your slab rate, including the 4% health and education cess.
Yes. The proviso to section 80CCE keeps 80CCD(1B) outside the Rs 1,50,000 aggregate ceiling, so a taxpayer who has already exhausted 80C can still deduct up to Rs 50,000 more for NPS Tier-I. The combined maximum is therefore Rs 2,00,000 from these sections.
No. Section 115BAC removes almost all Chapter VI-A deductions, and 80CCD(1B) is one of them; only the employer's NPS contribution under 80CCD(2) and a few others such as 80CCH and 80JJAA remain. You have to be on the old regime to claim the extra Rs 50,000.
No. The 10% of salary (basic plus dearness allowance) restriction — 20% of gross total income for the self-employed — applies only to section 80CCD(1). Amounts not claimed under 80CCD(1) can be claimed under 80CCD(1B) up to Rs 50,000 regardless of that percentage cap.
No. Only Tier-I contributions qualify. Tier-II is a voluntary withdrawable account with no lock-in and no deduction, except for the separate Tier-II Tax Saver scheme available to central government employees with a three-year lock-in. This is general information, not tax advice — check your own facts with a tax professional.
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