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Announcement : India amendment to section 80CCD(2) for state government employees is now available
Changes for India tax deduction under section 80CCD(2) for state government employees are now available.
Patch Information
Release 12.2 - Patch 33893519:R12.PAY.C
This patch delivers updates on top of R12.2.HRMS RUP 15 in Release 12.2.
Please note that the post-install steps detailed in the patch README are required.
India Amendment to section 80CCD(2) – for State government employees
Effective 1st April 2022, the tax exemption limit under Section 80CCD(2) of Chapter VI-A has been revised from 10% to 14% for state government employees.
As per section 80CCD(2), the amount of deduction that can be allowed towards the contributions by the state government in the account of employee for NPS (or any other pension scheme as notified by the central government) is the least of actual amount contributed, or 14% of employee’s salary (which includes basic salary and Dearness allowance).