How does the NPS tax benefit work? Up to 10% of primary and discretionary salaries (Basic DA) may be deducted from taxable income as NPS contributions from the employer. Use the NPS tax benefit calculator for perfect results. There is no monetary limit on this deduction How much is the NP...
Corporate individual/ subscriber:Further tax benefit is offered to the corporate subscriber subject to Income-tax Act u/s 80CCD (2). In the corporate, an employer can contribute up to 10% of the employee’s salary (basic + DA) i.e. from the taxable amount without any limit. ...
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...
Employer’s contribution: The employee is eligible for tax deduction up to 10% of Salary (Basic + DA) contributed by employer underSec 80 CCC(2)over and above the limit of Rs. 1.5 lakh provided under Sec 80 CCE. From financial year 15-16, there is anadditional tax exemption of Rs 50...
A Govt employee can claim a deduction of your employer’s contribution towards NPS under Section 80CCD (2), up to a limit of 10% of your salary (i.e. Basic Salary + Dearness Allowance). Employer’s contribution towards NPS or EPF (Employees’ provident fund) is not the part of your...
then it’s best to have a high component of equity in your NPS. If your EPF corpus isn’t very large as your employer doesn’t have a generous PF policy and you have already utilized PPF Rs 1.5 lakh annual limit, then you can use your NPS account as a debt product and have a hig...
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%. ...