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Tax Benefits on NPS Investments

NPS investments made by the investor, without any employee contributions, are tax deductible

My wife and I, both have NPS Tier-1 account. These accounts were opened by both of us individually and contributions are made by ourselves every year. There are no contributions from our employers in these accounts as our employers are not registered for NPS contributions for employees. I want to know if we can claim any deduction in Income Tax while filing Income Tax returns. Kindly advise.
- Sachin Gupta

If you are a private employee contributing towards NPS with no contribution from your employer's side, you can avail tax deduction benefit under Section 80CCD(1). This section makes your own contribution eligible for tax deduction up to 10% of Salary (Basic + DA) within overall ceiling of ₹1 lakh.



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