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NPS Contibution of emlpoyee and employer

Rachita Marothia (1 Points)

26 August 2019

How can we show NPS (employee and employer) while filing ITR?

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Kapadia Pravin (17259 Points)
Replied 26 August 2019

There is a deduction of up to Rs. 1.5 lakhs to be claimed for NPS – for your contribution as well as for the contribution of the employer. – 80CCD(1) covers the self-contribution, which is a part of Section 80C. The maximum deduction one can claim under 80CCD(1) is 10% of the salary, but no more than the said limit. For the self-employed taxpayer, this limit is 20% of the gross income. – You can claim any additional self contribution (up to Rs. 50,000) under section 80CCD(1B). The scheme, therefore, allows a tax deduction of up to Rs. 2 lakh in total.