80CCD(2) in private firms

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1 Points Posted on 01 June 2020

I work for a Private IT firm and for income tax relief I have my PF and Insurance. Recently i have opened a NPS account and gave a declaration to the company that I want to avail 80CCD(1B).   As I was going through other documents on NPS, came across 80CCD(2) which helps to save tax beyond 1.5lks + 50k.  I checked with my companies finance team and asked them to start allocating 5% of my Basic + DA to my PRAN number, but I got a reply that they need a minimum of 50 people to start this 80CCD(2).

IIs there any law that 80CCD(2) is dependent on the rules of the company , or is it the right of the employee to have investment in this section. Please advice. 

 

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On 01 June 2020 at 14:54 Report
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Quick Summary
An employee in a private IT firm is seeking to claim tax deductions under Section 80CCD(2) via their employer's contribution to their NPS account. Their company requires a minimum of 50 employees to initiate this, leading the employee to question if this is a legal requirement or an arbitrary company rule. The discussion clarifies that employers are generally obligated to comply if the law applies, and employee contributions can be claimed under 80C or 80CCD(1B), while employer contributions under 80CCD(2) have no monetary limit beyond 10% of salary.

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practising company secretary
3221 Points Posted on 01 June 2020
Yes, when the law applicable on the company. they have to comply with it. you can invest in health insurance or on fixed deposit. you will get extra deduction in case of health insurance. interest on fd is exempt upto 50000.
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On 01 June 2020 at 23:29
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BUSINESS DEVELOPMENT MANAGER
1697 Points Posted on 15 June 2020

Yes when it is applicable on the company. If you employer is contributing to your NPS account you can claim deduction under section 80CCD(2). There is no monetary limit on how much you can claim, but it should not exceed 10% of your salary. On contributions made by you, you can claim deduction under section 80C or 80CCD(1B)

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On 15 June 2020 at 16:57

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