Notably, tax deductions for employer contributions have increased to 14%, allowing you to save more. You can now withdraw up to 60% of your NPS corpus tax-free, while 40% must be used for an annuity. Additionally, the maximum equity exposure has been raised to 75% until age 60, with ...
*Employer contribution benefit is capped upto 7.5 lakhs invested as Employer contribution towards NPS, PF & Superannuation Please Note Tax deductions u/s 80CCD (1) and 80CCD (1B) shall be available only if the tax payer opts for old tax regime. ...
Circular - Parallel Processing of Exit and Annuity components for the benefit of NPS Subscribers 14-Nov-22 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 withou...
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...
Amit is a government employee and his employer deducts Rs 62,000 per annum (which is 10% of basic + DA) from salary as employee’s contribution in NPS. It also deposits Rs 62,000 per annum as employer’s contribution in NPS. How and under which section should he claim tax benefit on...
National Pension System (NPS) - Introduction Although the retirement age in India is not defined, given the current life expectancy of men and women, the standard norm is anywhere between 58-60 years. Now, when a person is working, they’ll be having a p
Tax Benefits For Salaried Individuals CategorySectionInvestment Limit Own Contribution 80 CCD (1) 10% of Salary (upto 1.5 lakh) Additional Contribution 80 CCD (1B) ₹50,000 Employer Contribution 80 CCD (2) 14% of Salary (upto 7.5 lakh)# For Self Employed Individuals CategorySection...
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 the Income Tax ...
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. ...
There is no limit as far as employer contribution is concerned in the corporate category, but tax benefit is available only up to 10% of your salary . How do I get a user ID and password for NPS? The user ID for NPS is called PRAN. To obtain the user ID, you need to fill up ...