National Pension Scheme (NPS) is a voluntary and long-term investment cum pension plan launched by the Government of India. This scheme is regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA). This pension program is open to employees from the public, private and even the unorganized sectors except those from the armed forces.

NPS scheme provides impressive long-term savings options so that an individual can plan his/her retirement time efficiently by investing in this market-linked investment plan. Read More

Salaried Employee

Employee’s own contribution up to 10% of salary (basic plus D.A.) to NPS are tax deductible under Section 80CCD (1) of the IT Act, subject to a ceiling of Rs.1.50 lacs under section 80CCE.

Any individual other than salaried employees

Contributions up to 20% of the Gross Income is deductible from the taxable income under section 80CCD (1) of the IT Act, subject to ceiling of Rs. 1.50 lacs under Section 80CCE.

For both salaried and self-employed individuals

An additional deduction for investment up to Rs.50,000/- has been provided under section 80CCD(1B) of the Income Tax Act, 1961 which is over and above the ceiling of Rs.1,50,000/-. Therefore, the total deduction that can be claimed for own contribution to NPS can go up to Rs.2 lakh. Read More