S. 80CCE is not the separate deduction.
Income Tax Section 80CCE restricts the aggregate amount of deduction u/s 80C, 80CCC and 80CCD upto Rs. 1.5 Lakh. S. 80CCE is not a separate section but a merging section of 80C, 80CCD and 80CCC.
i.e. Aggregate of deduction u/s 80C, 80CCC and sub section (1) of Section 80CCD shall not exceed —
Rs. 1, 50,000.
As per this section, the maximum amount of deduction that an assessee can claim u/s 80C, 80CCC and 80CCD will be limited to Rs. 1,50,000.
In other words, S. 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. 1.5 Lakh.
Thus, Overall Deduction Limit – S. 80CCE
As per S. 80CCE, deduction can be claimed by an assessee upto Rs. 1,50,000 for the payments / contributions made u/s 80C, 80CCC and 80CCD (contribution to pension scheme of Central Government).
Reference:
As Per Section 80CCE, of the Income Tax Act, 1961-
Limit on deductions under sections 80C, 80CCC and 80CCD.
80CCE. The aggregate amount of deductions under section 80C, section 80CCC and [sub-section (1) of section 80CCD] shall not, in any case, exceed one lakh rupees.
Amendment of Section 80CCE.
—In S. 80CCE of the Income-tax Act, for the word, figures and letters “Section 80CCD”, the words, brackets, figures and letters “sub-section (1) of section 80CCD” shall be substituted with effect from the 1st day of April, 2012.
Clause 8 of the Bill seeks to amend S. 80CCE of the Income-tax Act relating to the limit on deductions u/s 80C, 80CCC and 80CCD.
The existing provisions contained in the aforesaid S. 80CCE provide that the aggregate amount of deductions u/s 80C, 80CCC and 80CCD shall not exceed one lakh rupees.
It is proposed to amend the aforesaid S. 80CCE so as to provide that contribution made by the Central Government or any other employer to a pension scheme under sub-section (2) of section 80CCD shall not be included in the limit of deduction of one lakh rupees provided u/s 80CCE.
This amendment will take effect from 1st April, 2012 and will, accordingly, apply in relation to the assessment year 2012-2013 and subsequent years.
Further, amendment of S. 80CCE — Budget 2014-15 — relating to limit on deductions u/s 80C, 80CCC and 80CCD.
As per Finance (No. 2) Bill, 2014-
The existing provisions contained in the aforesaid section provide that the aggregate amount of deductions u/s 80C, 80CCC and 80CCD shall not exceed one lakh rupees.
It is proposed to amend S. 80CCE so as to raise he limit of deduction from one lakh rupees to one lakh fifty thousand rupees.
This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-2016 and subsequent years.