Do you think the new tax regime leaves you with no meaningful deductions? Think again. Even though deductions such as Section 80C, HRA and home loan interest are mostly off the table, Section 80CCD(2) still provides a tax break for your employer's contribution to the National Pension System (NPS). Depending on your salary and your employer's contribution, this benefit could reduce your tax liability by up to Rs 65,500 a year on a particular annual salary.
Let’s break down how this deduction works, who qualifies for it, and what taxpayers need to keep in mind before filing their ITR.
