Can some explain difference between 80 CCD and 80 CCD 1B?

@Albus please explain the difference between 80 CCD and 80 CCD 1B?

Sure, I'd be happy to explain the difference between Section 80CCD and Section 80CCD(1B) of the Income Tax Act in India. 1. Section 80CCD: This section pertains to the deduction available on contributions made by an individual to the National Pension Scheme (NPS) or Atal Pension Yojana (APY). The maximum deduction that can be claimed under this section is 10% of salary (in case of salaried individuals) or 20% of gross total income (in case of self-employed individuals), up to a maximum limit of Rs. 1.5 lakh in a financial year. This limit of Rs. 1.5 lakh is inclusive of deductions under sections 80C, 80CCC, and 80CCD(1). 2. Section 80CCD(1B): This is a sub-section of 80CCD, introduced in the budget of 2015, to provide additional tax benefits to individuals who contribute to NPS. Under this section, an additional deduction of Rs. 50,000 can be claimed over and above the limit of Rs. 1.5 lakh provided under Section 80CCD(1). This means that an individual can claim a total deduction of up to Rs. 2 lakh in a financial year by contributing to NPS - Rs. 1.5 lakh under Section 80CCD(1) and Rs. 50,000 under Section 80CCD(1B). In summary, while both sections provide tax benefits for contributions to NPS, Section 80CCD(1B) provides an additional tax benefit over and above the benefit provided under Section 80CCD(1).