Even though NPS is a product designed exclusively for retirement planning, what attracts most people to NPS is Rs 50,000 extra tax benefit it offers via deduction. As per the current tax rules (2019-20), there is an additional Rs 50,000 tax deduction available under Section 80CCD (1B) ...
Employer can claim tax benefit for the amount contributed towards pension of employees’ upto 10% of salary (Basic+DA) under ‘Business Expense’ Employees contribution is eligible for tax exemption as per the Income Tax Act, 1961 Additional deduction for investments up to Rs 50,000 can also ...
2.Tax benefit for the NPS subscriber u/s 80CCD (1B) -For the NPS Tier I subscriber, an additional deduction of Rs. 50,000 is available for the investment u/s 80CCD (1B). This investment facility is available over the deduction amount of Rs. 1.5Lac u/s 80C of Income-tax Act, ...
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...
t be a need to withdraw from NPS for other things. NPS is the only retirement-focused product that tries to put in place a real source of reliable pension during retirement years. And to be fair, this is a good thing for those who would find it hard to generate regular income from ...
Eligible for tax deductions Invest Now Tier II NPS Benefit of Investing in NPS Tax Benefits TheNational Pension System provides tax benefitsunder Section 80C and Section 80CCD(1B) of the Income Tax Act. By investing in NPS, you can avail a deduction of up to Rs. 1.5 lakh under Section ...