Tax benefits on Investment in NPS
- Investment up to Rs 1.5 lacs into NPS in a financial year is eligible for deduction under Section 80CCD(1). Overall ceiling of Rs 1.5 lacs for deduction under Section 80C.Capped at 10% of sal+DA or GTA
- Up to Rs 50,000 per financial year for any investments into NPS under Section 80CCD (1B). This deduction is over and above the ceiling limit of Rs 1.5 lacs provided under Section 80C.
- Contribution from the employer up to 10% of Basic Salary + Dearness Allowance is also eligible for deduction under Section 80CCD(2). There is no upper cap.
It is correct to assume that the limit of 10% of salary or GTI does not apply to this additional contribution of Rs. 50,000/- u/s 80CCD(1B)
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