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.
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...
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 ...
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. ...
The former category states that any government employee who has enrolled in NPS since the start or post the scheme date falls under this umbrella. The NPS contribution is made monthly by both the employer and employee.The latter category consists of both corporates and Indian citizens. As the ...
on the minimum contribution that is required to be fulfilled. However, there is no limit on the maximum amount. An NRI can invest without any restrictions in NPS but the tax benefit is allowed only to the extent of Rs 1.5 lakhs under 80C and Rs 50,000 under section 80CCD as applicable...
Tier I NPS is the primary pension account with certain withdrawal restrictions. It is designed to provide a retirement corpus and mandates a minimum contribution and a lock-in period until the age of 60. The funds invested in Tier I NPS are eligible for tax deductions under Section 80C of ...
Withdrawal or Transfer of Employee Provident Fund Salary, Net Salary, Gross Salary, Cost to Company: What is the difference Our article Should you Invest in NPS the National Pension Scheme for additional 50,000 and save taxdiscusses it in detail .In the very long run, an NPS option of 50...
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 showing it as business expense in the profit ...
In EPF, 24% of an employee’s salary is diverted to the EPF as a mandatory retirement saving scheme.There is no clarity on how the amount mandatorily deducted from the employer’s contribution and put into the EPS will be invested. But we guess it would also be invested in NPS like Gov...