National Pension System (NPS) is a retirement benefit Scheme introduced by the Government of India to facilitate a regular income post-retirement to all the subscribers. PFRDA (Pension Fund Regulatory and Development Authority) is the governing body for NPS. National Pension System (NPS) is based on unique Permanent Retirement Account Number (PRAN) which is allotted to every subscriber.
Tax Benefits: NPS offers triple tax benefits which are as follows:
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Tax benefits for Salaried Individual |
Tax Benefits for Self Employed Individual |
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You can claim tax exemption Upto Rs. 50,000 under section 80CCD (1B). This benefit is over and above limit of Rs. 1,50,000 under section 80C. |
You can claim tax exemption Upto Rs. 50,000 under section 80CCD (1B). This benefit is over and above limit of Rs. 1,50,000 under section 80C. |
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You may invest Upto 10% of your basic salary + dearness allowance and claim tax exemption on the invested amount under section 80CCD (1). This tax exemption is subject to a limit of Rs. 1,50,000 under section 80C of Income Tax Act, 1961. |
You may invest up to 20% of your gross annual income and claim tax exemption on the invested amount under section 80CCD(1). This tax exemption is subject to a limit of Rs. 1,50,000 under section 80C of Income Tax Act, 1961. |
*Employer contribution benefit is capped up to 7.5 lakhs invested as Employer contribution towards NPS, PF & Superannuation