Employer's contribution to NPS

I am a Tamil Nadu state government employee. In our state we use the term CPS - Contributory Pension Scheme - for National Pension Scheme (NPS). I am contributing 10 per cent of my salary (basic plus DA) and it qualifies for tax deduction under Section 80CCD. Can I show my employer's contribution for tax deduction in addition to overall limit of ₹1.5 lakh. I already have savings of ₹1.5 lakh under Section 80C. I have included my CPS contribution and other savings permitted under Section 80C in it, but excluded my employer's CPS contribution from it.
- Sengottuvelavan G

Employer's contribution is eligible for 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 ₹1.5 lakh allowed under section 80CCE. You can claim an extra deduction on your employer's contribution to NPS.

This article was originally published on February 08, 2016.