Question
How much employer NPS contribution is deductible under Section 80CCD(2)?
Answer
Bottom line: In the new regime, your employer's NPS contribution is deductible up to 14% of your basic plus DA.
1. New regime
The limit was raised to 14% for private employees (from 10%), giving parity with government staff.
2. Old regime
The limit stays 10% for private-sector employees.
3. Over and above
This is in addition to the ₹1.5 lakh 80C and ₹50,000 80CCD(1B), and it is available even under the new regime.
Estimate the benefit with our NPS Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.