Budget 2024: Employer NPS Contribution Limit Increased To 14% From 10%

Budget 2024 Update | In her seventh Budget speech, Finance Minister Nirmala Sitharaman announced significant tax changes for the 2024-25 fiscal year. The government will withdraw the 2% equalisation levy, providing relief to businesses. The standard deduction for salaried employees will be increased from ₹50,000 to ₹75,000 under the new income tax regime in FY25. Furthermore, the deduction limit for employers’ contributions to the National Pension System (NPS) will be raised from 10% to 14%, offering enhanced benefits for employees. These measures aim to simplify the tax structure and provide greater financial relief to taxpayers.