Nps premium

Tax planning 436 views 2 replies

Regarding National Pension Scheme (NPS):

In my case, the limit of 1.5 lakhs of deduction using section 80C is easily achieved with PF, LIC and NSC contribution. I have read somewhere that we can get additional deduction of 50k on taxable income by subscribing to NPS scheme. Could someone clarify if one needs to invest 2 lakhs premium in NPS on an yearly basis or 50k annual premium is enough to get this advantage?

Thanks

Replies (2)

Upto 10 % for salried amt for salaried person

Upto  10% of gross totoal income for  non salaried  

50k is addtional benefits under 80CCD(1) and 80CCD(2) over and above 1.5lk under 80C.

Its not salaried amount. It is 10% of basic plus da. Upto such extent you can claim deduction u/s 80ccd(2) if it is employer's contribution. Refer sec 80cce for more clarity if you require


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