I opted for OLD regime and NPS contribution by employer. After September 2024, my employer started deducting 14% of Basic towards NPS account.
In the final IT statement, only 10% is considered for tax exemption towards NPS contribution.
My query : Is there a way to file a complaint and get the additional 4% of Basic amount deducted towards NPS contribution back as this was a software issue from the employer side?
What are the action I can take for this wrongdoing?
Hey @tax_savvy
For private sector employees, the employer’s contribution to NPS is tax-deductible up to 10% of Basic + DA. For central government employees, the limit is 14%. So if you’re not a government employee, your tax exemption cap is 10%, regardless of the employer contributing more.
Hope this helps!
In August 2024 Budget, government introduced 14% of Basic for private employees under New Regime.
I opted for OLD regime but my employer still started deducting 14% of Basic towards NPS. They acknowledged it as a software error. Please guide how I can take actions on this.
Hey @tax_savvy
You can raise a grievance regarding this issue through the Income Tax e-filing portal.
Hope this helps!