SEO Sai Gr. Hosp.
211624 Points
Posted on 27 June 2024
Section 80CCD(2)
Salaried individuals can enjoy the benefit of their employer contributing to their pension schemes, such as the NPS. Section 80CCD(2) of the Income Tax Act gives employed individuals the benefit of claiming income tax deductions for contributions made by their employer. It is subject to the following conditions:
- Private-sector employees can claim a deduction up to 10% of their salary (basic salary + dearness allowance) under Section 80CCD(2)
- Government employees can claim up to 14%