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36.3%First documentDeductions Under Section 80CCD of Income Tax | Generali CentralOpen original ↗
Second documentTax Planning for Salaried Employees in India | Generali CentralOpen original ↗
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5. Are NPS withdrawals taxable?
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5. I s there a minimum amount I need to invest in NPS to claim tax benefits?
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5. Are NPS withdrawals taxable?
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5. I s there a minimum amount I need to invest in NPS to claim tax benefits?
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How employer contributions under 80CCD(2) benefit you
If your employer contributes to your NPS account, that amount is also eligible for tax deduction, but under Section 80CCD(2).
Investing in the National Pension System (NPS)
Moreover, the employer's contribution to NPS is also eligible for a deduction under Section 80CCD(2), subject to a limit of 10% of your basic salary. By investing in NPS, you can save on taxes while building a retirement corpus for your golden years.
Thank you for your interest!
Did you know NPS offers tax benefits beyond the standard ₹1.5 lakh deduction? Section 80CCD of the Income Tax Act provides deductions for contributions made to the National Pension System (NPS) — a voluntary retirement savings scheme regulated by PFRDA. It encourages systematic savings for retirement during an individual’s working life.
Investing in the National Pension System (NPS)
The National Pension System (NPS) is a voluntary retirement savings scheme. Contributions made to NPS are eligible for tax deductions under Section 80CCD(1B) of the Income Tax Act, over and above the ₹1.5 lakh limit under Section 80C. You can claim an additional deduction of up to ₹50,000 for contributions made to NPS.