NPS can help you save ₹15,600 extra in taxes
6 years, 2 months ago

NPS can help you save ₹15,600 extra in taxes

Live Mint  

Section 80C of the Income Tax Act allows you to save ₹1.5 lakh of your income from getting taxed if you invest or buy products that are eligible for deduction under the Section. In fact if you are a salaried individual, you should know that your contribution to the Employees’ Provident Fund, EPF, also qualifies for a tax deduction under Section 80C and there is a good chance that if you factor in your EPF contribution and principal repayment of a home loan, you would have already exhausted the ₹1.5 lakh limit. The National Pension System, in addition to qualifying for a tax deduction of ₹1.5 lakh under the overall limit of Section 80C, qualifies for an extra deduction of ₹50,000 under Section 800CCD ; this means and additional tax saving for ₹15,600 for someone in the highest tax bracket of 31.2%. So in terms of tax benefit, even if you exhaust your deduction limit of ₹1.5 lakh by investing in other Section 80C instruments, you can still get an additional deduction of ₹50,000 through NPS.

Tax Lakh Deduction Nps 80C Section 80C Section 80Ccd  15  80c  contribution  tax  lakh  save  nps  limit  extra  help  taxes  15600  deduction  income  50000

History of this topic

New tax regime: 3 deductions that can help taxpayers maximise savings
1 month ago

New tax regime: 3 deductions that can help taxpayers maximise savings

India Today  

The government, with the aim of simply personal taxation, introduced the new tax regime. Out of the total 7.28 crore ITRs filed, 5.27 crore were under the new regime, while 2.01 crore were filed under the old tax regime for AY 2024-25, indicating nearly 72% of taxpayers have shifted to the new system. Though the new regime offered concessional tax …

Invest in NPS or EPF? Experts explain benefits of retirement savings schemes
1 month, 1 week ago

Invest in NPS or EPF? Experts explain benefits of retirement savings schemes

Hindustan Times  

Salaried individuals in India usually plan their retirement keeping in mind the National Pension Scheme and the Employee Provident Fund. Abe Abraham, Partner at Cyril Amarchand Mangaldas, told Livemint, “Not all employers offer NPS but if your employer does it, you can request them to make employer contribution part of your salary. Tax benefits of NPS and EPF Employer contribution …

Why NPS can be your only retirement plan
1 month, 2 weeks ago

Why NPS can be your only retirement plan

New Indian Express  

The benefits of the National Pension Scheme significantly far outweigh the effort needed to learn and understand about investing. For years, you have put aside money for your retirement through employee provident funds, public provident funds, other government guarantee schemes or fixed deposits. Pension schemes across many countries in Europe are based on government guarantees. In India, 32.7 crore people …

National Pension Scheme: Busting The Common Myths About NPS
2 months ago

National Pension Scheme: Busting The Common Myths About NPS

ABP News  

By Kurian Jose The National Pension System offers great tax-saving opportunities, but there are myths that often confuse potential investors. Myth 1: NPS Tax Benefits Are Just Like Other Investments Reality: NPS offers unique tax benefits beyond the traditional Section 80C: Section 80 CCD : Up to Rs 1.5 lakh. Myth 6: You Cannot Invest in NPS If You’ve Exhausted …

How much can you invest in NPS? Secure lakhs in monthly pension
2 months ago

How much can you invest in NPS? Secure lakhs in monthly pension

India TV News  

Retirement planning is essential for a financially secure future. By investing in NPS, you can earn a monthly pension of lakhs depending on your investment strategy. If your target is a pension of Rs 1 lakh per month, you would need to invest Rs 20,000 per month. How can NPS provide Rs 1 lakh monthly pension Here’s how your savings …

7 last-minute investment strategies to save taxes before FY 2024-25 ends
2 months, 1 week ago

7 last-minute investment strategies to save taxes before FY 2024-25 ends

India Today  

As the financial year 2024-25 draws to a close, many taxpayers find themselves scrambling for ways to save on taxes. Let’s have a look at seven reliable options to consider: INVEST IN EQUITY LINKED SAVINGS SCHEME ELSS funds are a popular choice for tax-saving investments, offering exemptions of up to Rs 1.5 lakh under Section 80C of the Income Tax …

Top Tax-Saving Instruments To Maximize Your Returns In 2025
Trending News
2 months, 3 weeks ago

Top Tax-Saving Instruments To Maximize Your Returns In 2025

ABP News  

Planning and strategising your taxes is one of the most critical aspects of your financial management. These policies allow you to claim deductions of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Public Provident Fund The Public Provident Fund is one of the most popular tax-saving options under Section 80C for income tax benefits. Fixed …

Income Tax: 5 key points to consider before submitting proof of investments to your employer
3 months, 1 week ago

Income Tax: 5 key points to consider before submitting proof of investments to your employer

Live Mint  

If you are a salaried employee and have already made investments in some tax-saving instruments, it is imperative that you declare the same to your employer so that your salary in the last two months of fiscal 2025 is not reduced substantially. For instance, if you have invested ₹1 lakh towards an insurance premium and another ₹50,000 in the equity …

Budget 2024: What income tax benefits can taxpayers expect on July 23?
8 months, 1 week ago

Budget 2024: What income tax benefits can taxpayers expect on July 23?

India Today  

Taxpayers are eagerly waiting for July 23 when Finance Minister Nirmala Sitharaman will present the full budget for the ongoing financial year. Income tax exemption limit There is speculation that the government may raise the income tax exemption limit from Rs 3 lakh to Rs 5 lakh. If implemented, individuals earning up to Rs 8.5 lakh annually could potentially pay …

5 Tax Saving Mistakes To Avoid
1 year ago

5 Tax Saving Mistakes To Avoid

News 18  

Navigating the complexities of tax-saving strategies requires diligence and awareness of available deductions and exemptions. Taxpayers have access to various provisions under the Income Tax Act, such as Section 80C, which offers deductions for investments in avenues like PPF, ELSS, NSC, and EPF. Here are 5 common mistakes to avoid that can significantly impact your tax-saving strategy; Being Unaware Of …

NPS scheme may get a makeover in Interim Budget 2024
1 year, 2 months ago

NPS scheme may get a makeover in Interim Budget 2024

India Today  

India is expected to consider extending tax concessions on contributions and withdrawals in the upcoming Interim Budget 2024, in an effort to make the National Pension Scheme more attractive, as per a Deloitte report The government might specifically focus on individuals aged 75 and above. Corporations enjoy tax exemptions for contributions up to 10 per cent of the basic salary …

Over ₹10 lakh crore under its watch, NPS to ease withdrawal options
1 year, 6 months ago

Over ₹10 lakh crore under its watch, NPS to ease withdrawal options

The Hindu  

State governments that have ostensibly opted out of the National Pension System for their employees and have reverted to the Old Pension Scheme that guaranteed 50% of final salary as monthly pension, continue to remit due contributions to the NPS corpus. State government employees account for the largest chunk of the savings pool which crossed ₹10 lakh crore on August …

National Pension System: From Tax Benefits, Schemes To Withdrawal. Know Everything About The Pension Scheme
2 years ago

National Pension System: From Tax Benefits, Schemes To Withdrawal. Know Everything About The Pension Scheme

ABP News  

If you are considering an avenue to invest for retirement planning, then you can consider National Pension System as it offers a range of investment options and a choice of pension fund schemes. NPS Tier-1 account Tier I – Pension account Minimum Contribution during A/C opening is Rs.500 for Tier I NPS Tier-2 account Tier II – Investment account The …

How to generate a monthly pension of Rs.1 lakh from NPS?
2 years ago

How to generate a monthly pension of Rs.1 lakh from NPS?

Live Mint  

The Pension Fund Regulatory and Development Authority, which is governed by the Ministry of Finance of the Government of India, oversees the National Pension System, a voluntary specified contribution pension scheme in India. with 50-50 allocation - Monthly SIP up to the age of 60, with 5% increase in SIP amount each year - Lifetime annuity rate of 8% without …

Income Tax: With deductions of Rs 2 lakh per year, is NPS still the best tax-saving financial instrument?
2 years, 1 month ago

Income Tax: With deductions of Rs 2 lakh per year, is NPS still the best tax-saving financial instrument?

Live Mint  

During this peak tax planning quarter of Jan-Feb-Mar, you must be busy exploring various financial products that can give you the maximum tax benefits. Every financial year, the deduction can be claimed for the amount contributed up to: 10% of the salary for employees 20% of the gross total income for self-employed individuals However, the aggregate of deductions under Section …

NPS Calculator: Want to Get Rs 50,000 Pension After Your Retirement? Know How to Invest
2 years, 9 months ago

NPS Calculator: Want to Get Rs 50,000 Pension After Your Retirement? Know How to Invest

News 18  

NPS Calculator: Indian citizens who contribute to the country’s workforce look for several schemes, which will help them save money and provide returns without having much risk. The NPS is jointly offered by the Pension Fund Regulatory and Development Authority and the government of India, and acts as a stable savings against one’s retirement. NPS Eligibility A National Pension Scheme …

Got a salary hike? Here is how to plan your investment in order to save taxes
2 years, 10 months ago

Got a salary hike? Here is how to plan your investment in order to save taxes

Live Mint  

A salary hike in your early professional years helps you upgrade your lifestyle. Moreover, both these investments qualify for the Section 80C tax deduction up to ₹1.5 Lakh per annum. The NSC interest for the first four years of the investment is reinvested and qualifies for the Section 80C tax deduction. ELSS qualifies for the Section 80C tax deduction and …

Income Tax Rule Change: Tripple Tax Benefits on NPS; Know How it Works, Who Can Claim
3 years ago

Income Tax Rule Change: Tripple Tax Benefits on NPS; Know How it Works, Who Can Claim

News 18  

Finance minister Nirmala Sitharaman announced that state government employees will now be able to claim tax benefit of 14 per cent on the National Pension System made by their employer from financial year 2022-23. At present, only the central government employees are allowed to claim tax benefit of 14 per cent for the employer’s contribution to their NPS accounts. NPS …

Section 80C limit is exhausted, how can I still save more tax?
3 years, 1 month ago

Section 80C limit is exhausted, how can I still save more tax?

Live Mint  

I am 33 years old and work for a large multi-national company. Investors can choose from seven pension fund managers and decide their own asset mix. While the NPS is a good way to save for retirement and reduce tax, keep in mind certain features of the scheme. The silver lining is that one’s income comes down after retirement so …

Budget 2022: Tax deduction hiked from 10% to 14% on NPS accounts
3 years, 1 month ago

Budget 2022: Tax deduction hiked from 10% to 14% on NPS accounts

India TV News  

Budget 2022: Tax deduction hiked from 10% to 14% on NPS accounts Announcing income tax-related changes, Sitharaman said, "to provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year." Highlights Tax deduction hiked from 10% to 14% on NPS accounts, Sitharaman announced Currently, only central government employees are …

NPS could get additional income tax benefits: Key things to know
3 years, 2 months ago

NPS could get additional income tax benefits: Key things to know

Live Mint  

People have a lot of expectations from Nirmala Sitharaman's Union Budget 2022. The additional deduction limit under the National Pension Scheme could be raised from ₹50,000 to ₹1 lakh this year. However, an increment in the limit for additional deduction for NPS investments would also amount to a similar correct step in the right direction,” he said. Amit Gupta, MD, …

Should you invest in NPS just for the tax benefits?
3 years, 4 months ago

Should you invest in NPS just for the tax benefits?

Live Mint  

National Pension Scheme is an essential retirement planning tool. NPS investment has two options Active mode: The investor can evaluate the return annually and switch from equity to debt and debt to equity options in the active mode. This scheme has brought the comfort of the monthly pension enjoyed by the government employees to others like employees, freelancers, self-employed, etc.,” …

NPS scheme: 5 benefits of National Pension System that you should know
3 years, 8 months ago

NPS scheme: 5 benefits of National Pension System that you should know

Live Mint  

NPS scheme: National Pension System is a retirement-oriented investment option that provides a periodic annuity and a lump sum corpus on the attainment of retirement age. NPS scheme is one of the ideal pension and retirement planning schemes available in India for salaried, self-employed professionals and freelancers like lawyers, doctors, chartered accountants, entrepreneurs, architects and others who work in their …

This Scheme Offers Fixed Monthly Pension of up to Rs 5,000; Eligibility and Other Details
3 years, 9 months ago

This Scheme Offers Fixed Monthly Pension of up to Rs 5,000; Eligibility and Other Details

News 18  

Central government’s Atal Pension Yojana is a social security scheme. The scheme is based on the National Pension Scheme framework and has provisions to provide monthly pension upto Rs 5000 to individuals with a deposit of Rs 7 per day. If a person becomes a subscriber of APY at the age of 18 years, then he will have to deposit …

Tax benefits for investing in national pension system: Here's all you need to know
4 years, 1 month ago

Tax benefits for investing in national pension system: Here's all you need to know

India Today  

One of the biggest challenges of the working population in India, is to maintain a means of monthly income post their retirement due to cessation of salary from employer or income from employment. Tax Benefit 1: Deductions on subscriber’s contribution NPS contributions are eligible for tax deduction u/s 80 CCD of ITax Act or 20% of Gross Income for others) …

Here are 7 benefits to invest in National Pension System
4 years, 9 months ago

Here are 7 benefits to invest in National Pension System

India Today  

While we all are dealing with the covid-19 pandemic crisis, the topmost priority for all of us is to be safe. Subscriber contributing to NPS enjoys the following tax benefits: Tax Benefit 1: Deductions on subscriber’s contribution NPS contributions are eligible for tax deduction u/s 80 CCD of ITax Act or 20% of Gross Income for others) within the overall …

This NPS tax benefit can still be claimed under the new income tax rates
5 years, 1 month ago

This NPS tax benefit can still be claimed under the new income tax rates

Live Mint  

If you want to switch to the lower income tax rates and new slabs announced in Budget for financial year 2020-21, you have to forego most of the deductions including the popular Section 80C. But some deductions, including employer contribution on account of employee in notified pension scheme under Section 80CCD, can still be availed if you opt for the …

Union Budget 2020-21: Pension fund regulator wants govt to double tax benefit under NPS to Rs 1 lakh
5 years, 3 months ago

Union Budget 2020-21: Pension fund regulator wants govt to double tax benefit under NPS to Rs 1 lakh

Firstpost  

Pension fund regulator PFRDA is pitching for doubling the tax benefit under the NPS to Rs 1 lakh in the upcoming Budget, according to a whole-time member of the authority New Delhi: Pension fund regulator PFRDA is pitching for doubling the tax benefit under the NPS to Rs 1 lakh in the upcoming Budget, according to a whole-time member of …

Income tax benefits on NPS: New rules that came into effect this year
5 years, 4 months ago

Income tax benefits on NPS: New rules that came into effect this year

Live Mint  

The government has been amending NPS or National Pension Scheme rules to make the pension scheme more subscriber-friendly. Most recently, the government had raised income tax exemption limit for lumpsum withdrawal on maturity from NPS to 60%, from 40% earlier. Here are 5 things to know about recent changes in NPS rules: 1) In Union Budget 2019, the government had …

NPS investment proof: How to claim income tax deduction
6 years, 2 months ago

NPS investment proof: How to claim income tax deduction

Live Mint  

It is that time of the year when you have to submit proof of your investment to the employer to avoid paying excess taxes. For example, investment of up to ₹ 50,000 in Tier I NPS account in a financial year qualifies for tax deduction under Section 80CCD of the Income Tax Act. This extra ₹ 50,000 tax deduction is …

Tax-saving through NPS: Income tax benefits explained in 10 points
6 years, 2 months ago

Tax-saving through NPS: Income tax benefits explained in 10 points

Live Mint  

National Pension System or NPS is designed to save towards post retirement years by making contribution during the work life. Current Income tax benefits on Tier 1 NPS accounts 1) Tax benefit under 80CCD : For salaried as well as self-employed, investment of up to ₹ 50,000 in Tier I NPS account in a financial year qualifies for tax deduction …

Govt contribution to NPS raised to 14%, withdrawal made tax free, says Arun Jaitley
6 years, 3 months ago

Govt contribution to NPS raised to 14%, withdrawal made tax free, says Arun Jaitley

Firstpost  

New Delhi: Finance Minister Arun Jaitley on Monday said the Centre has decided to increase its contribution to the NPS for the central government employees to 14 percent and also made the entire withdrawal amount tax free at the time of retirement. The central government’s contribution to the National Pension System will be increased to 14 percent from the current …

Withdraw pension more than 50% of last drawn salary with this new govt rule
6 years, 3 months ago

Withdraw pension more than 50% of last drawn salary with this new govt rule

Live Mint  

Good news for central government employees! The cabinet has raised the government’s matching contribution to the National Pension Scheme to 14 per cent of the basic salary as against 10 per cent earlier, according to official sources. In a major development, central government employees are allowed to withdraw up to 60 per cent of their NPS corpus at the time …

NPS gets you extra ₹50,000 income tax deduction. How to claim
6 years, 4 months ago

NPS gets you extra ₹50,000 income tax deduction. How to claim

Live Mint  

If you are a salaried individual and have already exhausted the ₹ 1.5 lakh Section 80C income tax benefit, the NPS could help you with additional tax savings. Investment of up to ₹ 50,000 in the National Pension Scheme or NPS for all subscribers, whether salaried or self-employed, qualifies for additional tax deduction under Section 80CCD of the Income Tax …

Six income tax-saving investments under Section 80C
6 years, 4 months ago

Six income tax-saving investments under Section 80C

Live Mint  

In a few months time, the accounts department of your organisation will seek proof of your income-tax saving investments under Section 80C and other deductions. PPF, ULIP, ELSS mutual funds, National Savings Certificate, 5-year bank fixed deposits and Sukanya Samriddhi Yojana are some of the popular investment options that offer tax benefits under Section 80C. An assessee can claim deduction …

Centre permits partial withdrawal to NPS subscribers
6 years, 10 months ago

Centre permits partial withdrawal to NPS subscribers

ABP News  

New Delhi, May 5 : Partial withdrawals will now be allowed to subscribers under the National Pension System, who wish to improve their employability or acquire new skills by pursuing higher education/ acquiring professional and technical qualifications, the Centre stated on Friday. Following the Board meeting of the Pension Fund Regulatory and Development Authority, it was decided that individual NPS …

Decoding how taxpayer benefit adds up to Rs 4.44 lakh
10 years ago

Decoding how taxpayer benefit adds up to Rs 4.44 lakh

India TV News  

New Delhi: Finance Minister Arun Jaitley in his Budget Speech in Lok Sabha today proposed rationalization of various tax exemptions and measures to improve tax administration. To promote health care among individual tax payers, the NDA government proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit …

A big push to pension plan under study
11 years, 2 months ago

A big push to pension plan under study

The Hindu  

The New Year could see the introduction of a new pensions system in India that will offer retirement savers the option of tapping the high-risk-high-return equity markets. Stock market regulator Securities and Exchange Board of India will in its next board meeting in January take up a proposal to allow mutual fund companies to offer pension plans. Highly placed official …

Take advantage of NPS, corporates told
12 years, 6 months ago

Take advantage of NPS, corporates told

The Hindu  

Chairperson of the Pension Fund Regulatory and Development Authority Yogesh Agarwal urged corporate entities on Monday to take advantage of tax benefits on contribution made by employees to the National Pension Scheme. Mr. Agarwal said the three States, which have not implemented the scheme – Kerala, West Bengal and Tripura – are also likely to join the other States in …

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