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author's profile photo Former Member
Former Member

Clarification in FORM 16.

Posted on Dec 11, 2015 at 11:35 AM 53 Views

Dear All,

We have implemented note 2168787 and post that limit of CENTRAL GOVERNMENT PENSION LIMIT has been extended to 2,00,000 in IT0585 (80CCD(1B)).

I maintained data IT0585 and IT0586 as per the attachment but in FORM 16, under 80CCD, system considers only Rs. 50,000. It should be Rs. 80,000/-

and Chapter VI amount should be 2,35,000 (not 2,05,000).

Please help me to understand that calculation.

Best Regards,

RG

form 16.JPG (65.4 kB)
IT0585.JPG (30.1 kB)
IT0586.JPG (25.5 kB)
HCM (Human Capital Management) SAP ERP
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3 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Dec 11, 2015 at 11:46 AM

    Since the total of Section 80C (PF +EPF + 80CCC) already exceeds 150000, section 80CCD(1B) will be limited to 50000.

    This is as per the legal requirement.

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  • author's profile photo @ Dey Sankarsan
    @ Dey Sankarsan
    Posted on Dec 11, 2015 at 03:13 PM

    Hi,

    Earlier inside chapter VI you will get 1.5 lacs but now as per new regulation you can get extra 50k exemption against Pension scheme

    In your case it's happening.

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    • BALASUBRAMANIAN AP
      Dec 12, 2015 at 09:12 AM

      Hi,

      What Tania said was mentioned in the sap note 2168787 in page no.2 (under heading "Note"). Also, this note explained 2 scenarios in page 1.

      In your form-16 label, it is mentioned as 'Note 1- Aggr. of 80C, 80CCC & 80CCD(1) shalll not exceed Rs.1 Lakh" - probably, this may need to be changed as "1.5 Lakh".

      regards,

      Bala.

  • author's profile photo Venkatesh Orusu
    Venkatesh Orusu
    Posted on Dec 14, 2015 at 07:50 AM

    Go through below link you will get an idea.

    https://cleartax.in/Guide/Section80Deductions

    Regards

    Venkatesh

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