Employee contribution to PF/NPS in new regime

The new tax regime introduced by the Finance Bill 2020 significantly limits deductions. This discussion clarifies the treatment of employee contributions to PF and NPS. While employee contributions are deducted from salary, they are not reclassified as employer contributions. Importantly, employer contributions to NPS can still be eligible for a deduction of up to £50,000 under section 80CCD(1)(b), even within the new regime.