Is TDS deducted on the employer's PF or NPS contribution?

Question

tdsguru.in (CA firm) · Accepted Answer

The contribution itself isn't subject to TDS, but the employer's aggregate contribution to PF, NPS and superannuation above ₹7.5 lakh a year (and the income on it) is taxable as salary and enters the TDS computation. There is no separate TDS on the employer's retirement contributions, but where the aggregate employer contribution to recognised PF, NPS and superannuation exceeds ₹7.5 lakh in a year, the excess — and the annual accretion (interest/return) on it — is taxable as a salary perquisite. That taxable perquisite is added to salary income and the resulting tax is recovered through monthly TDS under Section 192.