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Q I have received salary for FY 2022-2023 up to August 2022. I have not received salary from September 2022 - March 2023. It is expected that I am going to receive it before end of the current year 2023-2024. So, while filing I-T returns for FY 2023-2024 AY 2024-2025, can I fill 10E form for tax relief? I believe that 10E form is for salary arrears and not for salary as whole.

Secondly, can I avail of exemption of income under Section 80QQB only in excess of ₹1,50,000 and up to ₹3,00,000; for example, if my royalty income is ₹70,000, no exemption is allowed, will I have to pay tax?

Thirdly, can I avail deduction of ₹1,50,000 under Section 80C and ₹1,50,000 under Section 80CCD (2) in the same financial year?

Kavita

A Relief under Section 89(1) can be claimed by filing Form 10E only when you receive salaries/pension in arrears.

In this case, due to lack of full information about the disbursal of salary by your employer, it is advisable to obtain Form 16 from your employer for each of the year you are referring to and act accordingly.

As per Section 80QQB of the Income Tax Act, 1961, a deduction of ₹3 lakh or the actual amount of royalty received, whichever is lesser, can be claimed.

However, it is to be ensured that all other criteria and additional filing of prescribed forms as provided for claiming the said deduction are met with.

It is to be noted that Section 80CCE provides for the overall deduction limit of ₹1,50,000 which covers aggregrate deductions claimed under Sections 80C, 80CCC and 80CCD(1).

An amount of up to ₹50,000 voluntarily contributed under Section 80CCD(1B) can be claimed over and above the ₹1,50,000 provided under Section 80CCE.

Further, in order to claim deduction under Section 80CCD(2), the contribution to NPS is to be directly done on your behalf by your employer where the same does not exceed 14% (in case of central or State government employers) and 10% (in the case of other employers) of the salary (that is, basic plus DA).

Contributions under Section 80CCD(2) are not covered under the overall limits prescribed under Section 80CCE.

QI am a State government employee and my NPS contribution during FY22-23 was ₹1,18,000. In addition to this, I paid life insurance premium (LIC) of ₹53,000 during the same period.

Can I show my NPS contribution split as ₹97,000 + ₹21,000 so that I can show ₹97,000 (as 80CCD 1) along with LIC premium of ₹53,000 for maximum benefit under section 80c and show remaining ₹21,000 under 80CCD 1B so that I can get an extra benefit or should I always show NPS amount as total?

Ajin Krishnan K

ASections 80CCD(1) and 80CCD(2) cover NPS contributions done directly from your salary by the employer/government as your contribution and employer contribution, respectively.

It is to be noted that the above sub-sections are covered under Section 80CCE, which provides for the overall deduction limit of ₹1,50,000 under Sections 80C, 80CCC and 80CCD. Only when NPS is voluntarily contributed can you avail the extra ₹50,000 as provided in Section 80CCD(1B).

The LIC premium paid by you is assumed to be done for yourself or your spouse or your dependent children and satisfies other conditions prescribed in Section 80C, which would enable you to avail of deduction under Section 80C with regard to life insurance premia.

Thereby, you may look into the split up of the NPS contributions done by you and your employer from your salary and voluntarily and avail the deductions accordingly under Section 80CCD and Section 80C with regard to life insurance premia read with overall limits prescribed by Section 80CCE and Section 80CCD (1B).

(The adviser is partner, GSS Associates, Chartered Accountants, Chennai)

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