Employers contribution to NPS

This discussion clarifies how to report employer contributions to the National Pension System (NPS) in your Income Tax Return 1 (ITR1). Employer contributions are generally considered part of your salary income under Section 17(1). However, contributions up to 10% of your basic salary plus Dearness Allowance (DA) can be claimed as a deduction under Section 80CCD(2) without any upper limit.