Is nps employers contribution 10% of basic is treated as tax free income.

K.G.Shah (M.Com) (106 Points)

18 February 2019  

I am contributing 50000 to Nps and my employer is depositing 50000 to NPS (which is10% of basic) . Whether the employers contribution is tax free salary ? .. i have planned and paid tax considering 50000 plus 50000 i.e. 30 % tax will save.. is it correct ? Please guide me urgently.