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Can I claim deduction on my contribution to NPS as well that put in by the employer

If I contribute Rs 50,000 annually in NPS and my employer also contributes 10% of my basic salary in NPS, what tax benefits will I be eligible for?
Shubham Agrawal Senior Taxation Advisor,
replies: Contribution to NPS by self is allowed u/s 80CCD(1B) up to Rs 50,000 per year, over and above the 80C limit of Rs 1.5 lakh. The contribution from your employer will be exempt up to 10% of basic salary + dearness allowance for deduction under Section 80CCD(2). There is no upper limit (in terms of amount) on this tax deduction and it is available only to employees.

I am a government employee. I plan to buy a flat worth Rs 85 lakh. Should I fund it with money that is there in my savings account, or money taken as gift from my mother, or loan from banks or loans from my cousins? What would be the most tax-compliant source of funds?
Jayant R. Pai CFP and Head-Products, PPFAS Mutual Fund
replies: Let your mother gift you the maximum amount feasible. Gifts from a mother to her children are treated as capital receipts and are not subject to income tax. However, it is advisable to concurrently draw up a gift deed, clearly stating the terms of the transaction. You can finance the gap with your own savings. If you are still falling short, take a loan from a recognised financial institution.

Such loans are eligible for tax benefits under Section 80C and 24. Borrow from cousins only as a last resort. While the interest paid on such loans is eligible under Section 24 (subject to certain conditions), the repayment of the principal does not qualify for benefits under Section 80C.
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