I am a central government employee. NPS monthly contribution is being deducted from my salary. However, my company recently noticed that they failed to deduct NPS of 7 months in the year 2011 (as I was not having PRAN then). Thus they gave me an option on whether I want the company to deduct the additional amount from my salary.
As per my instructions, the additional(arrear) amount was deducted in addition to my regular contribution. However as the total dedcution exceeded 10% of salary, it is not allowable under 80C. Can i claim relief of such arrear in deduction under any other section. As employers NPS contribution is added to salary first and then deducted. I am paying tax on employer's contribution (which is otherwise deductible) plus tax on employee contribution.
CAclubindia
