To summarize the tax angle of NPS,investments of up to Rs 50,000 in NPS Tier I account in a financial year qualify for additional tax deduction under Section 80CCD (1B) of the Income Tax Act.This is in addition to the Rs1.5 lac deduction available via Section 80C. Now as mentioned e...
On Employee’s contribution under Section 80CCD(1):Employee’s own contribution is eligible for tax deduction under sec 80 CCD (1) of Income Tax Act up to 10% of salary (Basic + DA). This is within the overall ceiling of Rs. 1.50 Lacs under Sec. 80 CCE of the Income Tax Act. On...
Authorities believe that while EPF is a statutory deduction scheme for all organized sector employees in any establishment having 20 or more employees, NPS is voluntary. Besides, whileEPF deductions are 12%each for employees and employers,NPS deductions are 10%. Budget 2015-16 and transfer of EPF...