NPS / National Pension Scheme is a smart way to accumulate a retirement corpus for yourself in an effective manner. Know about NPS scheme features, benefits & contribution under Section 80C.
Circular on allowing option to allocate 75% of subscriber’s contribution in Asset Class E (Equity) in Tier-I and 100% in Asset Class E (Equity) in Tier-II under active choice without any conditions of tapering from the age of 51 years. ...
with deductions available under Section 80 CCD (1). Additionally, NPS allows an extra deduction under Section 80 CCD (1B). Evaluate the tax benefits and their impact on your overall tax planning.
The employees as well as the state government make a contribution equal to 10 per cent of the employee’s basic pay. Therefore, the risks association with market fluctuations are mitigated and employees enjoy more social security. Therefore, the model, under Section 3 of the Andhra Pradesh Guara...
deduction on the Basic Pay+DA of the employer’s contribution on behalf of the employees. This is over and above Rs 1,50,000 benefit under Section 80 C, which is applicable to the employee’s contribution to the NPS kitty. Even the employer can claim tax benefit for its contribution by...
Contribution by government employees under Tier-II of NPS will now be covered under Section 80 C for deduction up to Rs 1.5 lakh for the purpose of income tax provided there is a three-year lock-in period. This is the same as schemes such as the General Provident Fund, Contributory Provid...
Put your monthly amount in the IA section: Subscribers must put the amount they want to give to their NPS account every month to participate. Expected (ROI): From the dropdown menu, choose the desired or wished return on investment. Then, for the subscriber's contribution to be effective,...
1.Tax benefit on partial withdrawal:NPS Tier-I account allows you to make the partial withdrawal i.e. 25% from own contribution with zero percent levied tax on it. 2.Tax benefit on Annuity purchase:Whatever amount is invested in the annuity purchase, it is free from tax. Though the recei...
Employee’s own contribution: Eligible for tax deduction up to 10% of Salary (Basic + DA) underSection 80 CCD(1)within the overall ceiling of Rs. 1.5 lakh under Sec 80 CCE. Employer’s contribution: The employee is eligible for tax deduction up to 10% of Salary (Basic + DA) contribut...
Switching your EPF contribution to NPS scheme is basically trading in an investment with assured returns, for investments with varying exposure and returns (but you also get an additional tax exemption with NPS).While the return on EPF savings this year is expected to be around 8.5%, the NPS...