National Pension Scheme: Can an employer’s NPS contribution under Section 80CCD(1B)?

In this article, we will look at the new National Pension Scheme. Many people are currently searching on the browser for an employer NPS contribution to be claimed under Section 80CCD(1B). This is one of the most searched questions of current time. Somebody has asked that his employer contribute NPS 10% of the basic and DA. Can he claim this under Section 80CCD(1B)? So to know the answer to this question you have to read this entire article. We have answered this question and we have even explained the answer. So read this entire article very carefully without missing anything.

National Pension Scheme

Here is the biggest question regarding the National Pension Scheme (NPS) can an employer contribution toward the National Pension Scheme be considered for claiming the deduction in Section 80CCD(1B)? An employer contributes NPS 10% of the DA and basic Can the person claim this under Section 80CCS (1B)? So the answer to this question is that the deduction for the National Pension Scheme contribution is now available under Section 80CCD. As per section 80CCD(1), the contribution of the taxpayer is fully eligible for the dedication of up to Rs. 1.50 lakh as per the limits which has laid in Section 80 CCE which also has a work to cover several 80 C and 80 CCC. Continue reading to know more.

It is also claimed that the deduction for the National Pension Scheme to restriction of 10% of the salary for the salaried. It can be restricted to 20% of the Gross Total Income (GTI). Also in the case of the above Section 80 CCD (1B) allows you an additional deduction of Rs. 50,000 as an way of contribution made by the NPS account which is over and above the available under Section 80 CCD(1). It has also been reported that the restriction of 20% gross total income and 10% of salary is not going to be eligible for the contribution which is made under Section 80CCD(1B).

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Also, the contribution by the employer to the NPS account is not going to be covered in the above limit of Rs. 1.50 lakh. So if the employer contributes within 10% of the salary, the entire amount of the employer contribution is going to be eligible for the deduction in the entire limit of Rs. 7.50 lakh for the employer contribution which is made by the employee provident fund. And the Superannuation and NPS will be going to take together in just a year. To know more stay tuned to techballad.

Prakash Israni
Prakash Israni

Prakash, the content creator for Techballad, has built a solid reputation for himself over the course of more than ten years of blogging