How does the contribution by employer function in respect of 80 CCD 2? Is it similar to EPF deduction wherein employer pays say 10% and deducts like amount from employees' salary
1 Replies
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 08 April 2023
Section 80CCD (2)
The provision under Section 80CCD (2) is available when an employer is contributing to the NPS of an employee. An employer can make contributions towards NPS in addition to those made towards PPF and EPF. The contribution made by the employer can be equal to or higher than the employee's contribution.
Section 80CCD (2) applies to only salaried individuals and not to self-employed individuals. The deductions under this section can be availed over and above those of Section 80CCD (1). Section 80CCD (2) allows a salaried individual to claim the following deduction:
- A maximum deduction of 14% of their salary (basic + DA) contributed by the Central Government or State Government towards NPS.
- A maximum deduction of 10% of their salary (basic + DA) contributed by any other employer towards NPS.
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