Budget 2020: Tax-free employers’ contribution to NPS, superannuation, provident funds capped at Rs 7,50,000 a year
Updated : February 01, 2020 08:35 PM IST
Under the existing provisions of the Act, the contribution by an employer to the account of an employee in a recognised provident fund exceeding 12 percent of salary is taxable.
Currently, any contribution to an approved superannuation fund by an employer exceeding Rs 1, 50,000 is treated as prerequisite in the hands of the employee.
An assessee is also allowed a deduction of 15 percent of the salary contributed by the central government and 10 percent of the salary contributed by any other employer under NPS.