tax deductions National Pension System

National pension system

 National Pension System & What Tax Deductions Can be Claimed?

National Pension System (NPS) is a defined contribution pension scheme in India, introduced by the Indian government in 2004. It is a scheme for the citizens of India to voluntarily save for their retirement and provide financial security during old age.

  • National Pension System (NPS) is a government-sponsored pension scheme that provides individuals with an additional source of retirement income.
  • It is an effective way to save for retirement as it allows tax deductions on investments up to Rs. 1.5 lakhs per annum under Section 80C of the Income Tax Act, 1961.
  • NPS also offers tax benefits on the contributions made by employers up to 10% of basic salary and dearness allowance (DA).
  • In addition, NPS provides certain other tax benefits such as exemption from long-term capital gains tax and withdrawal benefits at the time of retirement.

Understanding the Basics of NPS Tax Benefits & How to Avail Them

  • NPS Tax Benefits are an important part of the retirement planning process for many individuals. They provide a way for individuals to save for their retirement while taking advantage of tax benefits that are available to them.
  • Understanding the basics of NPS Tax Benefits and how to avail them is essential in order to make informed decisions about one’s retirement savings strategy.
  • This article will explore the basics of NPS Tax Benefits and how to avail them, including information about eligibility, contribution limits, and other important details.

Step-by-Step Guide for Claiming NPS Tax Deductions

Claiming NPS (National Pension Scheme) tax deductions can be a daunting task for many people. This guide aims to provide a step-by-step process to help you understand the process of claiming NPS tax deductions and make the most out of it.

We will cover topics such as understanding the eligibility criteria, gathering all the necessary documents, submitting your application, and understanding the different types of deductions available. With this guide, you will be able to easily navigate through the entire process with ease and confidence.

Understanding the Eligibility CriteriaThe National Pension Scheme (NPS) is a retirement savings scheme available to employees of all sizes.

It is administered by the Central Government of India and implemented in collaboration with private sector companies.

The scheme provides pension benefits and transferability of assets upon retirement to eligible members who have contributed at least ₹10,000 towards their pension fund.

What are the Maximum Deduction Limits under the National Pension Scheme?

  • The National Pension Scheme (NPS) is a government-backed retirement savings scheme that offers tax benefits to individuals. It provides an opportunity for individuals to save for their retirement and get tax deductions on the contributions they make.
  • However, there are certain limits on the amount of money you can deduct from your taxable income under the NPS. In this article, we will discuss the maximum deduction limits under the National Pension Scheme.
  • Maximum Deduction Limits under NPS: The maximum deduction limits are set on a yearly basis by the government, and they are updated every fiscal year.
  • For instance, in the fiscal year 2018-2019, the maximum deduction limit for contributions to the NPS is Rs. 1 lakh. The contribution limits for individuals/employees and companies will be determined as per their category as mentioned below:Individuals/employees: Rs 1 lakh per financial year (FY) from FY 2018-2019 onwards . In FY 2017-2018, this limit was at Rs. 60,000.
  • Companies: The limit for companies under the NPS is Rs. 500,000 in FY 2018-2019 and Rs. 5 lakh in FY 2019-2020 onwards.

Don't forget to share this article :-

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

Logo Registration

Logo Registration: Protecting Your Visual Identity Introduction In today’s competitive business world, your logo is

Read More »

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.We register business online and save time & paperwork.

Reno K Subramaniam
Reno K Subramaniam
22/03/2023
I have recently registered a Private Limited firm and was looking for a CA to take care of the filings, Startup India Certificate, and other formalities. I have received emails from legal Suvidha and a few others. I tried talking to them all. But, Mr. Mayank from Legal Suvidha was very impressive and was patient enough, prompt to answer all the queries. He has a very professional team and after the initial formalities, I started interacting with the team. It's not even 2 weeks but I really feel overwhelmed by their service and professionalism. I received my startup India certificate yesterday and my filings have been done promptly. The team at legal suvidha Ms. Nidhi, Ms. Priyanka, Ms. Koshika, and Ms. Saloni all show the same professionalism and are readily available to take care of the official filings and stuff. Overall a great experience till now and looking forward to a great journey!
pankaj tiwari
pankaj tiwari
22/03/2023
Legal suvidha is a team of genuine and experienced professionals who give you best services according to your profile
Raman Krishnan
Raman Krishnan
21/03/2023
Saloni from legalsuvidha has done a excellent job for filling and geting certificate of DPIIT. Thanks to legalsuvidha.
Prakaash Hari
Prakaash Hari
15/03/2023
Team Legal Suvidha offers a brilliant service. There communication is quite clear and they execute the job meticulously. We are a startup private limited company and their advice is so critical in making my decision. Well done team. Keep it up. Prakaash Hari, Director, ipixela.
Priyanka Rudra
Priyanka Rudra
02/03/2023
Dedicated team and fast response
Dr. Vishal Ghag
Dr. Vishal Ghag
21/02/2023
Been using their services since 3 years now and I am absolutely happy with Legal Suvidha. They have been supportive, understanding and highly skilled at helping me with my business needs.

Our Partnerships & Collaborations

Contact us and grow your business

Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.