Ø the DDO is deducted 10% salary (Basic Pay+DA) of every CPS employees towards NPS Account through PRAN Number
Ø Your employer (Govt contribution) will calculate 10% of your salary(B.PAY+DA) and then show it as contribution to NPS
Ø The point to note here is that the amount of 10% contributed by your employer (Govt contribution) will be treated as salary under Section 17 and will form part of Form No 16 issued to you.
Ø the contributions made by your employer towards your NPS account qualifies for deduction under Section 80CCD (2) without attracting the limit of Rs 1.5 lakh laid down in Section 80 C
i) Employee per annum CPS Deduction by DDO is Rs.60000/- 80CCD(1),80CCD(1B)
ii) The same amount Rs.60000/- is contributed by Govt. (80CCD(2)
Now we can understand…..
ADDITIONAL BENEFITS ABOVE 80CCE
1. EMPLOYER CONTRIBUTION TO NPS u/s 80CCD(2)
2. Employee Contribution to NPS u/s 80CCD(1B) Rs.50,000/-