New Forum Topic

No, the employer does not get a double deduction for the same NPS contribution. The important point is that Section 36(1)(iva) applies to the employer, whereas Section 80CCD(2) applies to the employee. For example, suppose an employer contributes ₹1,00,000 to an employee's NPS: Employer: Claims the eligible amount as a business deduction under Section 36(1)(iva). Employee: The same employer contribution is considered for the employee's deduction under Section 80CCD(2), subject to the applicable limit. Therefore, it is not two deductions by the employer; they are deductions available to two different taxpayers. Also, from AY 2025-26, the limit under Section 36(1)(iva) was increased for certain non-government employers from 10% to 14% of salary where applicable. So the simple exam answer is: 36(1)(iva) → deduction to Employer 80CCD(2) → deduction to Employee Hence, no double deduction to the employer. This is a common area where businesses consult chartered accountant firms in gurgaon, a chartered accountant gurgaon, a ca firm in gurgaon, or a ca in gurgaon.