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Claiming Additional Break for NPS

The new NPS deduction available under sub-section 1B is available to all taxpayers

I am a doctor with a private practice and my gross income is above ₹15 lakh. Will I get tax exemption of ₹2 lakh If I invest ₹50,000 in NPS in addition to ₹1.5 lakh in PPF? My CA told me that additional exemption of ₹50,000 is available only to salaried persons.
- D S Malik

Because NPS uses employer/employee terminology a lot, there is some confusion about the extra deduction available under the new sub-section 1B. However, the new sub-section doesn't lay down any condition to claim the extra deduction of ₹50,000 for contribution in NPS. That means the new deduction is available to all taxpayers. You can go ahead with your extra investment in NPS.

This article was originally published on August 12, 2015.

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