About NPS

All Indian citizens aged between 18-65 years can invest in this central government pension scheme. NPS is portable across jobs and geographies.

Tax Benefits for Individual Subscribers:

• Claim up to Rs.50, 000 tax deduction u/s 80CCD (1B) over and above the limit of 80CCE (under old tax regime)
• Individuals are also eligible for tax exemption for contributions of up to 10% of basic salary u/s 80 CCD (1A) within Rs.150, 000 limit u/s 80 CCE (under old tax regime)
• For the self-employed taxpayers, the tax- exempt contribution limit is 20% of the gross income with the maximum limit being capped at Rs. 1,50,000/- for a given financial year (under old tax regime)

Corporate NPS is available for Public and Private sector companies and is offered as an employee benefit along with Provident Fund, Gratuity, Superannuation or any other Pension Schemes.

Tax Benefits for Corporate Subscribers:

•  Claim up to Rs.750,000 tax deduction on employer contribution u/s 80CCD(2) over and above the limit of 80C (applicable to old and new tax regime)
•  Employer’s contribution of up to 10% of Salary (Basic + Dearness Allowance) up to 750000 p.a. is deductible from taxable income under section 80CCD (2) over and above Rs.150, 000 limit u/s 80 CCE

Please note: If the aggregate contribution made by an employer to an employee’s Provident Fund, NPS and an approved Super Annuation fund in a financial year exceeds Seven Lakh and Fifty Thousand Rupees, the excess amount will now taxable at the hands of the employee.

Tax Benefits for Corporate Subscribers:

• Corporates can avail of tax benefit u/s 36 (i) (IV) of Income Tax Act, 1961, on employer’s contribution towards NPS; up to 10% of salary (Basic + DA) can be deducted as ‘Business Expense’ from their Profit & Loss Account

Click here to open a NPS account.