You can avail additional tax deduction on contributions of up to Rs 50,000 in NPS over & above the 80C limit
07-Sep-2015 •Research Desk
I have already exhausted the limit of ₹1.5 lakh permitted under Section 80C of the Income Tax Act through contributions to Employees Provident Fund (EPF), insurance and tuition fees. I am planning to contribute ₹50,000 in National Pension Scheme (NPS) Tier1 account in the current financial year 2015-2016. Will this contribution qualify for tax deduction? If yes, under what section?
Additional tax deduction on contributions of up to ₹50,000 in NPS is available under Section 80CCD(1B) of the Income Tax Act. The section was introduced in the last budget.