Please reply.

Hi Komal,

Thanks for your question! Here's the quick clarification:

• Section 80CCD(1) is for your own contribution (i.e., employee’s contribution to NPS) — you can claim deduction here up to 10% of your salary (basic + DA) for salaried employees.

• Section 80CCD(2) is for employer’s contribution to NPS — this is a separate deduction, up to 10% of salary, which your employer can claim (and you get the benefit as well).

Regarding your question:

Can you ask your employer to contribute your own money (from your salary) to NPS under 80CCD(2)?

• No, your employer cannot contribute your own money under 80CCD(2). Employer’s contribution has to be paid by the employer separately.

• If you want to invest your own money, you should do it under 80CCD(1) — from your own savings or salary.

• You can’t ask the employer to pay your contribution from your salary and treat it as employer contribution under 80CCD(2).

Summary:
Your own contributions come under 80CCD(1) and are deducted from your salary directly by you. Employer contributions under 80CCD(2) are made separately by your employer and cannot be your own money routed through employer.