IncomeTax NPS

I am working in a Government of India institute for the past two years. The NPS contribution of 10% from the employee and employer is deposited in the POP of SBI.Till now it has been not transferred to the fund mamager as we don't have PPAN account. now for the past two years we are paying tax on the employers' 10% contribution. so, if it is not mamaged by fund mamager, we are not getting the benefits of NPS. so, why we should pay tax as CPF/EPF are not paying any tax on employers' contribution.

please suggest

asked Mar 18 '11 at 10:11 by Preetam 1111

Till now, employer's contribution was also considered part of employee salary, so income tax was deductible on that. From next financial year, employer's contribution to NPS will be kept out of employee's earnings and there won't be any tax payable on that. This is like EPF contribution as of now.

answered Mar 19 '11 at 15:29 by pankaj 5.2k320


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Asked: Mar 18 '11 at 10:11

Seen: 2,733 times

Last updated: Mar 19 '11 at 15:29