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Employee contribution to PF/NPS in new regime

Tax queries 250 views 2 replies

Subramanya

Tax Consultant

526 Points Joined March 2010

Dear All,

As per Finance bill 2020, almost all deductions and exemptions are not available in new regime. Incase an employee still want to continue with PF and NPS what will be the effect ?

Will employee contribution of PF/NPS will be treated as employer contribution ?

with regards,

Subramanya R

Replies (2)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Will employee contribution of PF/NPS will be treated as employer contribution ?

- Employee contribution deducting in employees salary. it's not account as employer contribution...

PF is compulsory deduction to be made by employer irrespective of tax deduction.

NPS contribution is also governed by National Pension Scheme. Tax deductions are secondary aspect.

Employer contribution to NPS is still allowable upto Rs 50000/- under 80CCD(1)(b) under new regime.

No sir how can you consider your contribution (deduction from salary) as Employer's contribution or vice versa. It can't be done.