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Thread: Tax implication on NPS

  1. #1
    Junior Member RKSINGH is on a distinguished road
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    Default Tax implication on NPS

    10% Government contribution in the NPS is added in the gross salary as well as in deduction under 80C for income tax calculation. The limit of rebate under 80C is only 1 lakh. So, for NPS contributor there are very less scope to get deduction of their other savings in PPF, LIC etc type tax saving schemes.

    Why NPS contributors not demanding finance ministry to exclude govenment contribution from gross salary as well as in deduction under 80C for income tax calculation.

  2. #2
    Junior Member jarunan is on a distinguished road
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    Default New Pension Scheme- How to join

    I am working in Mumbai. I do not have a pension plan from my employer. I am working in a public sector. How to join the new NPS? Whow is the PoP nearest to Chembur? can someone post details?
    -j.arunan

  3. #3
    Member mrajeev is on a distinguished road
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    Default

    Quote Originally Posted by RKSINGH View Post
    10% Government contribution in the NPS is added in the gross salary as well as in deduction under 80C for income tax calculation. The limit of rebate under 80C is only 1 lakh. So, for NPS contributor there are very less scope to get deduction of their other savings in PPF, LIC etc type tax saving schemes.

    Why NPS contributors not demanding finance ministry to exclude govenment contribution from gross salary as well as in deduction under 80C for income tax calculation.
    To my knowledge, the NPS contribution upto 10% by the Government is not included in the INCOME but INCLUDED IN THE EXEMPTION under 80CC. Please go through the CBDT Circular dated 30/09/2008 regarding Deduction of Tax at Source

  4. #4
    Junior Member sunil_43 is on a distinguished road
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    Default nps & budget 2011

    Quote Originally Posted by RKSINGH View Post
    10% Government contribution in the NPS is added in the gross salary as well as in deduction under 80C for income tax calculation. The limit of rebate under 80C is only 1 lakh. So, for NPS contributor there are very less scope to get deduction of their other savings in PPF, LIC etc type tax saving schemes.

    Why NPS contributors not demanding finance ministry to exclude govenment contribution from gross salary as well as in deduction under 80C for income tax calculation.
    there is finally some relief announced in this budget. employer contribution amount will be allowed tax deduction beyond the 1 lac currently allowed in section 80CC. an amendment will follow soon in this regard.

  5. #5
    Senior Member jaleelethiyil is on a distinguished road
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    Sir,
    Whether employer's contribution will add to income for calculating taxable income or not.

  6. #6
    Junior Member tohariom is on a distinguished road
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    Please confirm whether the contribution of government as employer towards NPS 10% shall be treated as taxable income or not. please attach circular also if any

  7. #7
    Senior Member SASI is on a distinguished road
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    Contribution of Government as Employer in NPS @10% will be treated as income. This amount will also be treated as deduction under 80CCD(2). The deduction will not be subjected to the limit of Rs.1,00,000 allowed under 80(c).See Income Tax Circular 08/2013 dt 10-10-2013.

    SASI

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