Tax Deductions for Investments in the NPS (National Pension System)
NPS Returns for Tier I & Tier II Accounts
Comparison of the NPS Scheme with Other Tax Saving Instruments
The following sections provide NPS tax benefits for National Pension Scheme investments.
Applicable Sections under the Income Tax Act, 1961 |
Tax Benefits Allowed |
---|---|
U/S 80CCD (1) |
Own contribution of the scheme subscriber towards Tier I investments is tax-deductible within the total ceiling of ₹1.5 lakh u/s 80C. |
U/S 80CCD 1(B) |
In addition to deductions under section 80CCD (1), subscribers are also allowed up to ₹50,000 as deductions towards Tier I contributions. |
U/S 80CCD (2) |
Contribution of an employer towards Tier I investments is eligible for a deduction of up to 14% for central government contributions and up to 10% for others. This deduction is over and above the deduction limit applicable u/s 80C. |
Contact Us