Employee contribution to PF/NPS in new regime

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Tax Consultant
526 Points Posted on 14 February 2020

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

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On 14 February 2020 at 18:57 Report
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Quick Summary
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.

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"Do the Right Thing...!!!"
128157 Points Posted on 14 February 2020
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...
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On 14 February 2020 at 23:06
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17269 Points Posted on 15 February 2020
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.
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On 15 February 2020 at 11:14

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