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Can I claim tax deduction on employer's contribution?

Employer's contribution to National Pension Scheme (NPS) qualifies for a tax deduction under Section 80CCD(2) of the Income Tax Act

I am a government employee. Can I take a rebate on employer's share in National Pension Scheme (NPS)?
- Gurvinder

Employer's contribution to National Pension Scheme (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 ₹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 09, 2016.

Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.

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