Paragraph match score 82.9%
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NPS Deduction Example:
Deduction of Additional Rs 50,000 [80CCD(1B)] Employee Self-Contribution: Additional contribution over (10% of Basic + DA) Self-Employed: Additional contribution over (20% of gross annual income) Employer’s tax-exempt contribution to employees NPS [80CCD(2)]: 10% of Basic +DA (matching employee up to this limit only)
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National Pension Scheme (NPS)
Employer’s contribution of up to 10% of salary (Basic Salary +DA) to your NPS account is exempt from your taxable income under section 80CCD (2). As per the Union Budget 2020, the amount of employer contribution to PF, NPS and superannuation fund in aggregate has been proposed to cap up to ₹ 7.5 lakh.