Employeeâs contribution â Section 80CCD (1) Allowed to an Individual who makes deposits to his/her Pension account. Maximum deduction allowed is 10% of salary (in case of taxpayer being an employee) or 10% of gross total income (in case of tax payer being self-employed) or Rs 1, 50,000 whichever less is.
This applies to current, former and retired employees. Premiums you pay for employees' group life insurance that is not group term insurance or optional dependent life insurance are also a taxable benefit.
BREAKING DOWN 'Social Security Benefits' Depending upon a taxpayerâs level of income, Social Security benefits may be taxable. As of 2016, taxpayers without a spouse and with a yearly income that exceeds $25,000 may have a portion of their Social Security benefits taxed.