What are the tax benefits under NPS?

Any individual who is a subscriber of NPS can claim tax benefit under Sec 80 CCD (1) within the overall limit of Rs. 1.5 lac under Sec 80 CCE.

• Exclusive tax benefit to all NPS Subscribers u/s 80CCD (1B)

An additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under section 80C of the Income-tax Act. 1961.

Tax Benefits under the Corporate Sector:

1. Corporate Subscriber:
   Additional Tax Benefit is available to Subscribers under Corporate Sector, u/s 80CCD (2) of the Income Tax Act. Employer's NPS contribution (for the benefit of employees) up to 10% of salary (Basic + DA), is deductible from taxable income, without any monetary limit.

2. Corporates
   Employer’s Contribution towards NPS up to 10% of salary (Basic + DA) can be deducted as ‘Business Expense’ from their Profit & Loss Account.