The 80CCD deduction for AY 2019-20 can be divided into three different categories:
- 80CCD (1): You can avail of this deduction irrespective of whether you're in employment or self-employed on the amount deposited under a pension scheme notified by the Central Government (NPS deduction for AY 2018-19). The deduction allowed in this section is lower of the following 3 amounts:
- 10% of your Salary (Basic salary+D.A) (in case you're in employment) or 20 % of your Gross Total Income (in case you're self-employed)
- Limit left under section 80CCE i.e. Rs 1,50,000 - deduction u\s 80C - deduction u\s 80CCC.
- Actual Amount paid under eligible NPS.
