As per this section, the maximum amount of deduction that an assessee can claim under Sections 80C, 80CCC and 80CCD will be limited to Rs 100,000.
In other words, Section 80CCE is not the separate deduction. It says that the Maximum limit for deduction under all the 3 laws means,
– Section 80C
– Section 80CCC &
– Section 80CCD is combinely Rs.1 Lakh.
The New Pension Scheme – Section 80CCE:
Ask your employer to provide you New Pension Scheme (NPS). Under direct regulatory oversight by government agency (PFRDA) the scheme offers option of extra saving through tax benefit over and above 80C (employer sponsored). The returns are also linked to the market that will help to grow your savings more than return on debt. The employer’s contribution up to 10% of basic plus DA is eligible for deduction under Section 80CCE over and above the Rs 1.5 lakh limit.
Most of us get trapped in insurance policies to save taxes but there are other better ways of saving taxes and growing your wealth. A combination of a health plan, term policy, Mutual Fund (ELSS), PPF and New Pension Scheme contribution will help you save taxes, provide adequate health and life cover and also provide growth to your portfoli