Deduction under Sec 80CCD increased to 14% for state govt. employees

Mita Basak | Last updated: 02 February 2022

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State government employees will now benefit from an increased deduction limit for their National Pension System (NPS) contributions. The deduction under Section 80CCD has been raised from 10% to 14% of their salary, aligning it with the limit for central government employees. This change, effective retrospectively from April 1, 2020, aims to prevent any additional tax liability for contributions made above the previous 10% limit.

Incentives to National Pension System (NPS) subscribers for state government employees 1. Under the existing provisions of the Act, any contribution by the Central Government or any other employer to the account referred to in section 80CCD of the Act (NPS account), shall be allowed as a deduction to the assesses in the computation of his total income, if it does not exceed 14% of his salary where such contribution is made by the Central Government. This limit is presently 10% of his salary w

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1 Year PLAN

1999

(Excl. of GST ₹359)

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2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

Mita Basak

Professional

I write informative articles on taxation, GST, TDS/TCS compliance, corporate laws, EPF, government schemes, and finance-related topics. My focus is on simplifying complex legal, tax, and compliance matters into practical and easy-to-understand guides for professionals, businesses, and general readers.

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