# NPS Employer Contribution **URL:** \ **Category:** Payroll\ **Created:** [November 11, 2020, 7:22am UTC](https://community.greythr.com/t/nps-employer-contribution/1350 "2020-11-11T07:22:51Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![Swati](https://avatars.discourse-cdn.com/v4/letter/s/5f9b8f/32.png) [@Swati](https://community.greythr.com/u/Swati)\ **Post date:** [November 11, 2020, 7:22am UTC](https://community.greythr.com/t/nps-employer-contribution/1350/1 "2020-11-11T07:22:51Z")
Hello members, Should I include my employer’s contribution to NPS in my taxable salary and calculate? -Swati ---
**Author:** ![Shanthakumar](https://avatars.discourse-cdn.com/v4/letter/s/dec6dc/32.png) [@Shanthakumar](https://community.greythr.com/u/Shanthakumar)\ **Post date:** [November 11, 2020, 7:40am UTC](https://community.greythr.com/t/nps-employer-contribution/1350/2 "2020-11-11T07:40:44Z")
Employer’s contribution towards NPS contribution is not to be considered for tax purpose. ---
**Author:** ![aftlam01](https://avatars.discourse-cdn.com/v4/letter/a/3da27b/32.png) [@aftlam01](https://community.greythr.com/u/aftlam01)\ **Post date:** [November 11, 2020, 7:48am UTC](https://community.greythr.com/t/nps-employer-contribution/1350/3 "2020-11-11T07:48:37Z")
**Tax Benefits under the Corporate Sector:** 1. **Corporate Subscriber:** Additional Tax Benefit is available to Subscribers under Corporate Sector, u/s 80CCD (2) of Income Tax Act. Employer’s NPS contribution (for the benefit of employee) up to 10% of salary (Basic + DA), is deductible from taxable income, without any monetary limit. 2. **Corporates** Employer’s Contribution towards NPS up to 10% of salary (Basic + DA) can be deducted as ‘Business Expense’ from their Profit & Loss Account. ---
**Author:** ![Makepositive](https://avatars.discourse-cdn.com/v4/letter/m/3be4f8/32.png) [@Makepositive](https://community.greythr.com/u/Makepositive)\ **Post date:** [November 11, 2020, 7:58am UTC](https://community.greythr.com/t/nps-employer-contribution/1350/4 "2020-11-11T07:58:23Z")
Hello, Nps employer’s contribution is exempted to tax up to 10% of annual basic salary. Ankur ---
**Author:** ![Dinesh](https://avatars.discourse-cdn.com/v4/letter/d/a8b319/32.png) [@Dinesh](https://community.greythr.com/u/Dinesh)\ **Post date:** [November 11, 2020, 8:07am UTC](https://community.greythr.com/t/nps-employer-contribution/1350/5 "2020-11-11T08:07:12Z")
Hi everyone agree with all your discussions. Yes! It can be claimed under the tax deductions for excemptions. ---
**Author:** ![Nisha](https://avatars.discourse-cdn.com/v4/letter/n/76d3ee/32.png) [@Nisha](https://community.greythr.com/u/Nisha)\ **Post date:** [November 11, 2020, 8:34am UTC](https://community.greythr.com/t/nps-employer-contribution/1350/6 "2020-11-11T08:34:58Z")
Hi @Swati Any payment made by your employer to your pension account is a part of your taxable salary. For a payment to be considered as salary, an employer-employee relationship must exist. As per income tax act, taxable salary includes: - Pension - Taxable gratuity also. Hence you can consider it during your IT filing. Thanks, Nisha ---
**Author:** ![amiths](https://avatars.discourse-cdn.com/v4/letter/a/2acd7d/32.png) [@amiths](https://community.greythr.com/u/amiths)\ **Post date:** [November 11, 2020, 11:36am UTC](https://community.greythr.com/t/nps-employer-contribution/1350/7 "2020-11-11T11:36:02Z")
@Swati Employer Contribution to NPS is taxable. It is exempted under section 80CCD(2) based on the below conditions. The contribution made by an employer shall also be allowed as a deduction under [section 80CCD(2)] while computing the total income of the employee. However, the amount of deduction could not exceed 14% of salary in case of central Govt. employees and 10% in any other employees. \*10% of salary in case of employees otherwise 20% of gross total income.