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Nps premium

Tax planning 345 views 2 replies

Nataraja KN

Others

4 Points Joined September 2015

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)

S. Shiroor

Others

1212 Points Joined July 2015

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.

Ajit Hegde

CA - Final

1367 Points Joined September 2009

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