Regarding nps employer contribution tax exemption

172 views 1 replies

can i claim employer contribution or it has to be showned in GTI and deducted in diduction?

Replies (1)

As per Sec 80CCD of Income Tax Act , 1961 , if the employer has contributed any amount towards NEW PENSION SCHEME (NPS ) , it will be added to the GROSS SALARY of the employee and also deduction shall be allowed for such contribution but maximum to the extent of 10% of retirement benefit salary .
Retirement benefit salary = Basic Pay + Dearness Allowance ( if provided in terms of employment ) + Commission if paid as a fixed % of turnover .
Hence , you cannot claim exemption but rahther show it in GTI and then claim deduction .  


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register