Kindly could someone tell me whether I have to add the government's contribution part of NPS which is deductible u/s 80 CCD(2) to my gross salary first ?
I'm talking about government's contribution part only because it's not shown in my salary statement.
thanks in advance.
Yes, you have to add your employer's contribution to National Pension System (NPS) to your gross salary and then claim a tax deduction on it.
Employer's contribution to NPS qualifies for a tax deduction of up to 10 per cent of the salary (basic plus DA) under Section 80CCD(2) of the Income Tax Act. This contribution is not included in the overall limit of R1.5 lakh allowed under section 80CCE. So, this is an an extra tax deduction for you.
CAclubindia
