Employers contribution towards employees NPS

Hi Pankaj,

My querry is related to employers contribution towards employees NPS whether employer contribution is included in the max saving(i.e. Rs 100000/-) a person can save apart from tax free Slab Rs 0- 180000/- for tax exemption. My Gross Salary (Basic+grade Pay+HRA+ADA+CPF + other allowances) = Rs 460645 which includes my total CPF contribution Rs 38967. i have no saving in this financial year. My Employer has deducted rs 24927/- as TDS. He added his contribution Rs 38967 & "other income" Rs 525 in my Gross Salary amounting Rs 500137 as my net income and accordingly calculated Tax. As told by you in one of the previous comments Employers contibution is not included in employees taxable income. Please Guide

Regards Puneet Rai

asked Jul 13 '12 at 17:09 by Puneet Rai 111

Employer contribution would be non-taxable u/s 80CCD. If employer has not provided deduction for same, You can also do while income tax return filing. There is an option of specifying 80 CCD (Employers contribution) in ITR form. This is non-taxable upto 10% of basic salary.

answered Jul 18 '12 at 08:58 by Pankaj Batra 5.2k320


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Asked: Jul 13 '12 at 17:09

Seen: 2,237 times

Last updated: Jul 18 '12 at 08:58