How to Claim Section 80EEA Exemption

If you’ve ever looked into tax-saving options, you’ve probably heard about Section 80C. But tucked within that section is another powerful tax benefit Section 80CCD. This section lets you save more while planning for your retirement through the National Pension System (NPS).

In this post, let’s break down the 80CCD deduction list what it includes, how much you can claim, and a few quick examples to make it easy to understand.

Quick 80CCD Deduction List

Breaking It Down in Simple Terms

• 80CCD(1) – This is the part you contribute yourself. So, if you invest ₹1 lakh in NPS, that goes under this section. Remember, it shares the ₹1.5 lakh cap with 80C and 80CCC. 
• 80CCD(1B) – Introduced to motivate more retirement savings. You can claim an extra ₹50,000 deduction over your usual 80C limit. It’s perfect for those who’ve already maxed out 80C and still want to reduce taxable income. 
• 80CCD(2) – This one’s for employer contributions. If your employer adds to your NPS, that amount is tax-deductible for you too — without affecting your ₹1.5 lakh limit.

Example to Make It Clear

Let’s say Ravi, a salaried employee, invests ₹60,000 in his NPS Tier-I account. His employer adds ₹30,000 to his NPS, and Ravi also puts ₹70,000 into PPF.
That means:

• ₹1.3 lakh (₹60,000 + ₹70,000) fits under the ₹1.5 lakh limit.
• Employer’s ₹30,000 is separate under 80CCD(2). 
• If Ravi contributes another ₹50,000 under 80CCD(1B), he can claim that as well — bringing his total tax-saving potential to ₹2 lakh.