Income tax deductions | Section 80CCE
Section 80CCE: Combined Deduction Limit Under Sections 80C, 80CCC and 80CCD(1)
Section 80CCE of the Income-tax Act, 1961 sets an overall ceiling of Rs. 1,50,000 on the aggregate deduction claimed under Section 80C, Section 80CCC and Section 80CCD(1). It does not give a separate additional deduction of Rs. 1,50,000.
What is Section 80CCE?
Section 80CCE is a ceiling provision in Chapter VI-A of the Income-tax Act, 1961. It brings together three specified deductions and limits their combined amount. It is relevant when calculating deductions for years governed by the 1961 Act, subject to the tax regime chosen.
Meaning of the sections covered by the limit
| Provision | What it covers | Interaction with Section 80CCE |
|---|---|---|
| Section 80C | Specified payments and investments such as eligible life insurance premiums, provident fund contributions, tuition fees, eligible housing-loan principal repayments and notified savings products. | Included in the combined ceiling. |
| Section 80CCC | Eligible contributions by an individual to certain pension annuity plans of LIC or other insurers. | Included in the combined ceiling. |
| Section 80CCD(1) | Qualifying individual contributions to a notified pension scheme such as the National Pension System, subject to its own percentage conditions. | Included in the combined ceiling. |
Which NPS deductions fall outside this combined ceiling?
Section 80CCD(1B): Under the 1961 Act, an eligible individual may claim a further deduction of up to Rs. 50,000 for qualifying contributions to a notified pension scheme. The same contribution cannot be counted twice under Section 80CCD(1) and Section 80CCD(1B).
Section 80CCD(2): Qualifying employer contributions to the notified pension scheme are governed by separate statutory percentage limits and are not included in the Section 80CCE ceiling. The applicable percentage depends on the employer category, tax regime and relevant assessment year.
Section 80CCE also does not itself cap separate deductions such as Section 80D, which are subject to their own rules.
Example: How the Rs. 1.5 lakh ceiling works
| Eligible payment | Illustrative amount |
|---|---|
| PPF and eligible life insurance under Section 80C | Rs. 1,10,000 |
| Eligible pension annuity contribution under Section 80CCC | Rs. 30,000 |
| Eligible NPS contribution under Section 80CCD(1) | Rs. 40,000 |
| Total eligible contributions | Rs. 1,80,000 |
| Maximum aggregate deduction under Section 80CCE | Rs. 1,50,000 |
In this illustration, Rs. 30,000 exceeds the combined ceiling and cannot be deducted under these three provisions. A separate Section 80CCD(1B) claim, where legally available, requires qualifying contributions and must avoid double counting.
Old tax regime, new tax regime and transition to the Income-tax Act, 2025
Under the concessional tax regime of Section 115BAC of the 1961 Act, deductions under Sections 80C, 80CCC and 80CCD(1) generally are not available; consequently the Section 80CCE ceiling does not create an allowance under that regime. Eligible employer contributions under Section 80CCD(2) are treated separately.
The Income-tax Act, 2025 came into effect on 1 April 2026. For tax years governed by the newer legislation, readers should consult the corresponding provisions and applicable rules of that Act instead of assuming that old section numbers and assessment-year terminology remain unchanged. This page preserves Section 80CCE of the 1961 Act for historical and transitional reference.
Original Section 80CCE text and legislative amendment notes
The following is the statutory extract and amendment history retained from the original webpage. Editorial footnote markers have been preserved; consult the authoritative legislation for the applicable version and tax year.
1The aggregate amount of deductions under section 80C, section 80CCC and 2 sub-section (1) of section 80CCD shall not, in any case, exceed 3 one hundred and fifty thousand rupees.
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1. Ins. by Act 18 of 2005, s. 24 (w.e.f. 1-4-2006).
2. Subs. by Act 8 of 2011, s. 9, for "section 80CCD" (w.e.f. 1-4-2012).
3. Subs. by Act 25 of 2014, s. 29, for "one lakh rupees" (w.e.f. 1-4-2015).
Official legal resources
- India Code - central legislation and statutory text
- Income Tax Department - legislation and tax guidance
- Income Tax e-Filing Portal - taxpayer services
- Union Budget - Finance Acts and legislative materials
Frequently asked questions
Can I claim Rs. 1.5 lakh each under Sections 80C and 80CCC?
No. Section 80CCE restricts the aggregate of Sections 80C, 80CCC and 80CCD(1) to Rs. 1.5 lakh.
Is the extra Rs. 50,000 NPS deduction covered by Section 80CCE?
No. Section 80CCD(1B) has a separate ceiling, subject to eligibility, regime restrictions and the prohibition against claiming the same contribution twice.
Does the Section 80CCE limit include employer NPS contributions?
No. Employer contributions qualifying under Section 80CCD(2) are subject to their own conditions and limits.