Budget 2022: NPS deductions limits increases from 10 to 14 percent
Union Finance Minister Nirmala Sitharaman said that increasing the tax deduction limit to the NPS account of the state government would help enhance social security benefits and bring them at part with central government employees.
The announcement of hiking tax deduction limit from 10 percent to 14 percent for state government employees under the National Pension System (NPS) helps them to enhance social security benefits.
Union Finance Minister Nirmala Sitharaman said that increasing the tax deduction limit to the NPS account of the state government would help enhance social security benefits and bring them at part with central government employees.
At present, the Central government contributes 14 percent of the salary of its employees to the National Pension System (NPS) This allowed as a deduction in computing the income of the employees.
But such deduction is allowed only 10 percent of the salary for state government employees. Now increase of 4 percent deduction in the salary provide equal treatment to both Central and State government employees.
Pension Fund Regulatory and Development Authority (PFRDA) chairman Supratim Bandyopadhyay has welcomed the budget announcement of hiking the tax deduction limit to 14 percent for state government employees under NPS.
