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.
Regarding Government's contribution of NPS
Replies (17)
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.
Dear Sir.,
Govt contribution means Company's contripution?
Thanks Dhirajlal sir.
I think the deduction limit of employer's contribution towards NPS u/s 80 CCD(2) is ₹50,000/- as of now.
I think the deduction limit of employer's contribution towards NPS u/s 80 CCD(2) is ₹50,000/- as of now.
| Originally posted by : S ELAVARASI | ||
| Govt contribution means Company's Contripution? | ||
YES, EMPLOYER'S CONTRIBUTION......(here, he is Govt. employee)
| Originally posted by : Ranjan Mukherjee | ||
| I think the deduction limit of employer's contribution towards NPS u/s 80 CCD(2) is ₹50,000/- as of now. | ||
|
Income tax laws allow tax deduction for contributions to NPS under three sections.
First, the employee’s contribution under Section 80CCD(1). This deduction is under the overall Rs 1.5 lakh limit under Section 80C.
Second, up to 10% of the basic salary put into the NPS by the company on behalf of the employee is deductible without any limit.
The third is the new Section 80CCD(1B) under which a taxpayer can claim deduction for voluntary contribution of up to Rs 50,000.
Refer:: 1. nps-tax-benefit
2. nps-to-give-extra-tax-deduction-10-things-to-know
Thanks a lot sir for clearing my doubt.
My Pleasure.......
| Originally posted by : Dhirajlal Rambhia | ||
 |
Originally posted by : S ELAVARASI Govt contribution means Company's Contripution? YES, EMPLOYER'S CONTRIBUTION......(here, he is Govt. employee) |
 |
Thank You Sir...
The same way the Pvt Company/Firm employee can use above said all benefits Sir...??
Yes, provided the employer is willing to join NPS.
By subscribing to corporate NPS, both employee and employer stand to gain:
>> The employee contribution up to 10% of basic plus DA is deductible under Section 80 CCD within the limit of Rs 1.50 lakh
>> The employer's contribution up to 10% basic plus DA is allowed as deduction under Section 80CCE over the Rs 1.5 lakh limit
>> The employer can claim tax benefits by showing the amount contributed towards pension of employees as 'business expense'.
>> The tax benefit on employer's contribution has been offered since December 2011
>> The contribution towards NPS will be over and above the mandatory contribution towards the Employee Provident Fund
For more details refer: you-can-switch-from-epf-to-nps
sir how much I can claim tax deduction for T.A. is it ₹19200 ?
yes, upper ceiling for Transport/ Conveyance Allowance is Rs. 19200.
@ Rs.1600 per month
agar kisi employee ki 80c ki limit 150,000 cross ho jati hai, to kya vo remaining amount NPS ki amount ke sath section 80 ccd (1b) main include kar sakta hai?
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