NPS contribution

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This discussion clarifies the contribution limits for NPS Tier 1 accounts. While there's no upper limit on how much you can invest in Tier 1, the tax deduction is capped at Rs 2 lakh annually. This includes Rs 1.5 lakh under Section 80C and an additional Rs 50,000 specifically for NPS Tier 1 under Section 80CCD(1B). Tier 2 accounts offer easier withdrawal but no tax benefits.

Sanjay Budhiraja

Sanjay Budhiraja (Querist)
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30 November 2022 Hello Experts
I want to know the limit of contribution in NPS Teir 1 to make my corpus more.. i am now 49 yrs. Besides tax rebate i should get u/s 80C and 80 CCD 1(B)..
Pl advise ..
Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 November 2022 The maximum benefit you can claim is 2 lakhs.
1.50 lakhs in aggregate under sec. 80C, which includes investment in any other options available under the sub-section;
while 50K u/s. 80 CCD(1B) of the act, specifically for NPS Tier I investment in a year..

Sanjay Budhiraja

Sanjay Budhiraja (Querist)
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30 November 2022 Sir. It means I can invest more but not not More than 2 lac..
Pl confirm

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 November 2022 Yes, you cannot get deduction of more than 2 lakhs from the taxable income.

CA.Pujah

CA.Pujah (Expert)
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01 December 2022 NPS Tier 1 Contribution
The minimum NPS Tier 1 contribution is Rs 1,000 per annum. There is no maximum limit on your NPS Tier 1 contribution. The minimum initial contribution to the NPS Tier 1 Account is Rs 500.

However, as sir, told tax benefit is restricted to 50000/- only. Further, There is no tax benefit on investment towards Tier II NPS Account.

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Sanjay Budhiraja

Sanjay Budhiraja (Querist)
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01 December 2022 Madam. PL advise shall i open teir 2 account also to mak my corpus more
.
Regards