N.N.RAJAN (PROFESSIONAL) (243 Points)
07 February 2017Sir,
U/s 80 CCD (2) an employee can avail deduction for contribution by employer without any limit.i.e.,in addition to Rs.150000/- under 80 C etc. and 80 CCD(1B) of Rs.50000/- for employee contribution to NPS. Now my doubt is whether the contribution by employer should be included under the gross salary? Usually the salary satement of an employee does not include that?
CA Raksha Shree
(Associate Consultant)
(421 Points)
Replied 08 March 2017
It should not be included in the gross salary but it can be deducted from gross total income. And for deduction under sec 80ccd(2) the amount is limited to 10% of salary for salaried person and 10% of gross total income for non salaried person
CAclubindia
