Section 80CCD(2) of the Income Tax Act gives employed individuals the benefit of claiming income tax deductions for contributions made by their employer.

Private Sector Employees can claim a deduction up to 10% of their salary (Basic Salary + Dearness Allowance) and Government employees can claim up to 14%.


Adding deduction u/s 80CCD(2),


Follow the steps below to claim your deduction on contributions made by your employees,

  1. Navigate to Save > Begin/Edit > Deductions > Add/Proceed.
  2. Select Section 80CCD(2) and click on Proceed.
  3. Add the amount invested in NPS by your employer.
  4. Once you have added the investment amount correctly, click on Save.

Want to see the deductions that you just added? Go to the summary view under, Tax Situation > Deductions.