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Deduction under section 80ccd(2)

Manish (Student) (60 Points)

27 July 2022

Employer’s contribution towards NPS Tier-I is eligible for tax deduction under Section 80CCD (2) of the Income Tax Act (14% of salary for central government employees and 10% for others).

Can an employee of the Central Autonomous Body claim deduction of employer's contribution towards NPS @ 14% of salary under section 80CCD(2)

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7 Replies

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 27 July 2022

Yes it can be availed if they are covered under New Pension Scheme

ARVIND KUMAR Ramawat (4 Points)
Replied 27 July 2022

While Filing ITR there is difference in amount Under 80 CCD(2) including arrear shown by DDO and admissible amount causing tax liabilty. How to get exemption ?

Manish (Student) (60 Points)
Replied 27 July 2022

Employees of Central Autonomous Body are not Central Govt employees .
Then how can an employee of Central Autonomous Body claim deduction @ 14% instead of 10% under section 80CCD(2)?

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 29 July 2022

Budget 2022 has increased the % to 14% from 10%.

You may check once

Manish (Student) (60 Points)
Replied 29 July 2022

Sir, only percentage of employer's Contribution has been increased to 14% but rules for claiming deduction u/s 80CCD(2) are still mention as :

Deduction towards contribution made by an employer to the Pension Scheme of Central Government

If Employer is a PSU, State Government or Others

Deduction limit of 10% of salary

If Employer is Central Government

Deduction limit of 14% of salary

My question is-

Q1. Can an employee of a Central Autonomous Body claim deduction u/s 80CCD(2) @ 14% instead of 10%?
(As under the above section it is clearly written as "only Central Government employee can claim deduction for employer's contribution towards NPS @ 14% and others can claim deduction @ 10% only".)

Q2. What is nature of employment of an employees of a Central Autonomous Body ? Are employees of Central Autonomous Bodies considered employees of the Central Government? Or they will come under the category of 'Others' for ITR filing.