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Section 36(1)(iva) deduction is for:
AGratuity contribution
BEmployer NPS contribution up to 10% of employee salary
CPF contribution
DVoluntary contribution (per relevant Section)
Answer & Solution
Correct answer: B. Employer NPS contribution up to 10% of employee salary
1. Section 36(1)(iva) allows employer's NPS contribution as deduction.
2. Maximum 10% of employee's salary (basic + DA).
3. From FY 2022-23: 14% for Central Govt employees.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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