Last Updated on July 23, 2024 at 6:03 pm
Currently, section 80CCD(2) allows a deduction in the taxable income from National Pension Scheme Employer contributions – 10% from non-government subscribers and 14% from government subscribers. This deduction is allowed in both the old tax regime and the new tax regime. Also see: Budget 2024: New Tax Regime vs Old Tax Regime Calculator: Check which is better.
Budget 2024 has allowed non-government employers to contribute up to 14% of the employee’s salary to the NPS.
However, this increased deduction from 10% to 14% in the Employer contribution under section 80CCD(2) is only applicable for those file under the new tax regime!
Please note:Do NPS employer contributions result in “additional” tax savings?
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