tax implications

tejmaljain 1
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ICICI Bank has told that they can not accept cheque from employer. So employer's cheque has to be deposited in my a/c and my cheque is to be given to ICICI Bank for deposit in NPS a/c. Is this correct procedure ?

Employer's contribution up to 10% of Basic Salary is exempt from tax. whether this amount can be deposited in tier II or only in Tier I ?

tier-1 employer-contribution new-pension-scheme nps
1 Answers

ICICI is right in asking for cheque from your account. As per new rules, investment has to be done from account holder's account.

Employer's contribution can only be done in Tier-1 for tax exemption.

Pankaj Batra5212
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