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.

 

Tax Benefit for Self Employed Individuals

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 80C.

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)

 

Tax Benefit for Salaried Individuals

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 80C

You have not exhausted your 80C limit yet?
You can invest up to 10% of your Salary (Basic + DA). 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)

NPS Registration

 

Defer your Withdrawals

Additional Tax Benefit for Salaried Individuals under Corporate NPS

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) to the extent of Rs 7.5 lakh is deductible from taxable income u/s 80CCD (2) of Income Tax Act, 1961.

 

Please note:

  1. Tax deductions u/s 80CCD (1) and 80CCD (1B) shall be available only if the tax payer opts for old tax regime. Please consult your CA to know more about this.
  2. Tax benefit under Section 80 CCD (2) can be availed in either of the tax regimes.

Tax Benefit for Self Employed Individuals

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 80C.

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)

 

Tax Benefit for Salaried Individuals

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 80C

You have not exhausted your 80C limit yet?
You can invest up to 10% of your Salary (Basic + DA). 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).

 

Additional Tax Benefit for Salaried Individuals under Corporate NPS

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) to the extent of Rs 7.5 lakh is deductible from taxable income u/s 80CCD (2) of Income Tax Act, 1961.

 

Please note:

  1. Tax deductions u/s 80CCD (1) and 80CCD (1B) shall be available only if the tax payer opts for old tax regime. Please consult your CA to know more about this.
  2. Tax benefit under Section 80 CCD (2) can be availed in either of the tax regimes.
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Types of NPS Accounts

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Investment of Funds under NPS

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Exit & Withdrawal from NPS

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Investment in NPS Annuity

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Charges Under NPS

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