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How employer contributions under 80CCD(2) benefit you
If your employer contributes to your NPS account, that amount is also eligible for tax deduction, but under Section 80CCD(2).
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Investing in the National Pension System (NPS)
Moreover, the employer's contribution to NPS is also eligible for a deduction under Section 80CCD(2), subject to a limit of 10% of your basic salary. By investing in NPS, you can save on taxes while building a retirement corpus for your golden years.