Increase in NPS contribution limit by Employer in Budget 2022

Rajiv (Accountant) (137 Points)

03 February 2022  

Good Afternoon !!!!

Dear Sir/Madam,

As we all know in budget 2022, govt has increased NPS contribution limit of employer to 14% from 01st April, 2022 which will be beneficial for all the employees but please clear below statement.

"This amendment will take effect retrospectively from 1st April, 2020 and will accordingly apply in relation to the assessment year 2020-21 and subsequent assessment years; so as to ensure no additional tax liability arises on any contribution made in excess of 10% during such time."

Can we take above benefit in FY 2021-22 ?

Please advise