A NEW INCOME

A New Income Q&A

Q: Can anyone explain these lines???{see detail}?

"Any contribution made, in excess of 10%, by the Central Government or any other employer to the account of the employee under the New Pension Scheme ..............shall also be included in the salary income." It's about New Pension Scheme. In this scheme 10% of the employee's salary is deducted in pension fund and Govt contributes 10%.Now I want to know whether the Govt contribution[10%] will be a part of my salary or not?

A: FIRST OF ALL EMPLOYER CONTRIBUTION TOWARD NEW PENSION SCHEME WILL BE ADDED TO YOUR SALARY,,,,,, AND AFTER ALL deduction u/s 80CCD ALLOWED UPTO 10% OF SALARY MAX 100000. FOR DETAILS As per the provisions of section 80CCD, where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004, has in the previous year paid or deposited any amount in his account under a pension scheme as notified vide Notification No. F.N. 5/7/2003- ECB&PR dated 22.12.2003, he shall be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited as does not exceed ten per cent of his salary in the previous year.

A New Income Q&A A New Income