Only Tier I NPS gets Tax Rebates | Value Research Tier-II NPS accounts are not eligible for tax rebates. Only Tier I accounts are
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Only Tier I NPS gets Tax Rebates

Tier-II NPS accounts are not eligible for tax rebates. Only Tier I accounts are

I am a central government employee working in the Railways since January 2005. I have a compulsory NPS Tier I account with matching contribution from my employer. Moreover I am also contributing to NPS Tier II account voluntarily every month. From 2015-16, as announced in union budget, contribution of ₹. 50,000/- in a financial year in NPS would be eligible to tax rebate over and above existing ₹1,50,000/- limit under section 80C. So is my voluntary contribution to NPS Tier II account also eligible for the rebate?
- Amit Suri

Tier-II NPS accounts are not eligible for tax rebates. Only Tier I accounts are. Tier II NPS accounts are meant to an add-on savings account available to NPS account holders. You can make additional voluntary investments in Tier I account itself and earn the additional tax break on it. But remember, you cannot withdraw this sum until retirement.


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