Can an employer's NPS contribution have been claimed under Section 80CCD(1B) of the National Pension Scheme?

 Can an employer's NPS contribution have been claimed under Section 80CCD(1B) of the National Pension Scheme?

Is it possible to use the employer's NPS contribution while claiming a third deduction under Section 80CCD(1B)? 10% of my employer's basic and DA salaries go into NPS. Can I use Section 80CCD(1B) to claim this?

The NPS contribution deduction is accessible under Section 80 CCD, to be precise. According to the limitations outlined in Section 80 CCE, which also includes the various items of Section 80 C and Section 80 CCC, the contribution of the taxpayer is qualified for deduction under Section 80 CCD(1) up to a maximum of 1.50 lakh. For salaried workers, the deduction for NPS is limited to 10% of their pay, while for everyone else, it is capped at 20% of gross income.

In addition to the aforementioned, Section 80 CCD (1B) enables you to deduct an extra 50,000 for contributions you make to an NPS account that go above and beyond the deduction allowed by Section 80 CCD(1). For contributions received under Section 80 CCD(1B), the 10% salary or 20% of gross total income restriction does not apply.

The 1.50 lakh rupee cap mentioned above does not include the employer's contribution to the NPS account. Therefore, the entire amount of the employer's contribution is available for deduction within a total cap of 7.50 lakh for the the employer's input made towards the employee provident fund, NPS, and The retirement savings plans taken together in a year, so long as the employer's contributions is within the limit of 10% of the salary. 

Please be aware that the employer may make contributions to both the NPS account and your provident fund at the same time.

Your income is first adjusted to include the employer contribution amount, which is then deducted in accordance with Section 80CCD(2). As long as the total payment to the EPF, NPS, and superannuation does not exceed 7.50 lakh, this can be a fantastic tax planning tool for the high-salary person.