Answer

1. F

   Facts

   Yes. Employer's NPS contribution is deductible under Sec 80CCD(2) in both regimes. Under the old regime the limit is 10% of salary for private employers, and 14% under the new regime.

2. P

   Provisions and law

   • Sec 80CCD(2), Income-tax Act 1961 (now Sec 124)Deduction for the employer's contribution to NPS, within a percentage of salary.
3. A

   Analysis

   With basic plus DA of ₹8,00,000, the old regime cap is ₹80,000. If the employer contributes ₹96,000, ₹16,000 is not deductible under the old regime. This deduction is outside the ₹1,50,000 80C limit.

4. C

   Conclusion

   1. 1Check employer NPS contribution in Form 16.
   2. 2Compute 10% of basic plus DA.
   3. 3Claim the lower amount under 80CCD(2).
   4. 4Note that the cap differs in the new regime.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.