NPS contribuitons in Samiit- Not Eligible for Tax Deductions?

Samiti has notified NPS for new employees and accordingly made deductions from March 2010 from their salaries and has been depositing in an NPS Fund Account in the absence of a dedicated fund manager and record keeping agency.  This causes a huge financial loss to the new employees (to know more please read my previous post "Delay in implementation of NPS costs each employee Nine to Twenty Five Lakh rupees") 
Besides the financial loss, there is a tax angle which is blatantly ignored in Samiti. As per section 80CCD of Income Tax Act the contributions of both the employees and employers are exempted (with a cap of 10 per cent in case of employer) if such amounts are paid  "in his account under a pension scheme notified or as may be notified by the Central Government".  As the NPS is notified under relevant finance bills, the contributions are allowed as deductions under section 80CCD. What about the NPS Fund Account of the Samiti? Which financial bill notified it for exemption? Isn't allowing the contributions as deductions a clear violation of the law of the land? The onus of TDS lies with the Principals and in the absence of individual income tax return filing, responsibility of the Principals has become more crucial.

Whatever may be the outcome, the losers are employees. The policy to implement NPS in Samiti  is a classic case study  of improperly thought out and hastily effected policy of governance.

New Pension System notified by Samiti

New Pension System was notified by samiti last week and employees who were appointed prior to 1/4/2004 should exercise their option with in three months. Many employees are confused about the system as NPS is a noval product. All the senior employees got disappointed as they could not get GOI pension. Majority lack a clear understanding of the NPS and its architecture. In order to decide the pros and cons one must understand the product first. I think you can get all your doubts cleared at pension fund regulators site
There is one important positive of NPS. In old system 10 per cent of basic pay was the contribution from the employee and the employer. Under NPS, both contribute 10 per cent of Basic Pay+Grade Pay+Dearness Allowance. For an employee who is two or three decades away from retirement, the contribution from Samiti will be far higher than that of Samiti's contribution under CPF as it is restricted to 10 per cent of Basic Pay and Grade Pay and Dearness Allowance is not considered.. Please read my post:"how much pension you would get: for further information and links for calculations.