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I fall under the new tax regime. Can I claim tax benefits on an additional Rs 50,000 investment in NPS under Section 80CCD? - Anonymous
No, it isn't under the new tax regime.
This benefit is available only to those who have opted for the old tax regime.
However, there is still a way to claim a tax benefit under the new tax regime. If your employer contributes to your NPS account, you can claim a deduction under Section 80CCD (2).
But do note that the exemption is capped at 14 per cent of your basic pay and dearness allowance.
Summary of tax benefits on NPS investments
This is for all taxpayers, irrespective of whether they have opted for the new or old tax regime
| Section | Investment method | Maximum tax exemption limit (Rs) | Available under |
|---|---|---|---|
| 80C | Self, including salary deductions (employee contribution) | 1.5 lakh | Old tax regime |
| 80CCD (1B) | Self (employee contributions through salary deductions can also be included) | 50000 | Old tax regime |
| 80CCD (2) | Salary deductions (employer's contribution) |
Old tax regime: 10% of basic pay and DA (14% for government employees) New tax regime: 14% of basic pay and DA (for all employees) |
Both old and new tax regimes |
Also read: Don't make this mistake with NPS
This article was originally published on January 15, 2025.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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