NPS not only helps you plan for your retirement, it allows you to save tax at the same time. Whether you are looking for tax saving opportunities within 80C or beyond, NPS offers you both. Yes, that is correct!
Also, no matter whether you are self employed or working with a Corporate, NPS offers exclusive tax benefits over and above 80C limit for both. Further, if your 80C limit is not exhausted, you can still invest in NPS to avail tax benefits under 80C.
Exhausted your 80C limit?
You can invest up to Rs.50,000 and avail tax deductions u/s 80CCD (1B) of Income Tax Act, 1961.
This tax benefit is over & above the tax benefits claimed by you for your investments of up to Rs. 1.5 lakh under 80CCD(1).
You have not exhausted your 80C limit yet?
You can invest up to 20% of your Gross Annual Income. This amount to the extent of 1.5 lakh is eligible for tax deduction u/s 80CCD (1) of IT Act, 1961.
Additionally, you can invest up to Rs.50,000 and avail tax deduction u/s 80CCD (1B)
Exhausted your 80C limit?
You can invest up to Rs.50,000 and avail tax deductions u/s 80CCD (1B) of Income Tax Act, 1961.
This tax benefit is over & above the tax benefits claimed by you for your investments of up to Rs. 1.5 lakh under 80CDD(1)
You have not exhausted your 80C limit yet?
Under the old tax regime, you can invest upto Rs. 1,50,000 under section 80CCD(1) and an additional amount of Rs. 50,000 under section 80CCD(1B). So to summarize, even a salaried individual can avail a tax deduction on a total of Rs. 2,00,000 on self contribution under the old tax regime
Under Corporate NPS scheme, employees get additional tax benefits on investment routed through their employer. Such investment up to 10% of Salary (Basic + Dearness Allowance) under old tax regime and upto 14% of Salary(Basic + Dearness Allowance) under new tax regime to the extent of Rs 7.5 lakh is deductible from taxable income u/s 80CCD (2) of Income Tax Act, 1961.
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