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BANSAL
22-01-2010, 08:32 PM
As per circular of CBDT an amount of contribution by govt or employer is a part of salary of employee.

As regard deducation under sec 80CCD only employee contribution upto 10% of salary is counted.

Kindly confirm whether I am right or not.

tvenkatam
23-01-2010, 08:42 AM
As per circular of CBDT an amount of contribution by govt or employer is a part of salary of employee.

As regard deducation under sec 80CCD only employee contribution upto 10% of salary is counted.

Kindly confirm whether I am right or not.

Dear Mr. Bansal,

Deduction under Chapter VI-A of the IT Act is allowed on the contribution made by an employee under NPS, not exceeding 10% of his salary in the previous year.