Important Points of Section 80CCD of the Income Tax Act:

1. This Section deals with contributing to the NPS Tier 1 Account.
2. Only an individual is eligible to claim this deduction.
3. This is the additional deduction is not subject to ceiling limit of Rs. 1,50,000/- as provided under Section 80CCE.
4. Deduction amount is Rs. 50,000/-
5. The deductions under Section 80CCD(1B) are available to salaried individuals as well as to self-employed.
6. withdrawal of 25% of the contribution made is exempt from taxation.
7. In case the assessee dies, and the nominee decides to close the NPS account, then the amount received by nominee is exempt from taxation.
8. The assessee can withdraw 60% of the entire amount on reaching the age of 60 years as tax-free income. The remaining 40% is also tax-free if it is used to purchase an annuity plan.