Benefits of NPS

Under Section 80C, self-employed NPS subscriber can claim tax deduction of 20% of their gross income, up to ₹1,50,000

In addition to Section 80C, the subscriber can also claim tax deduction on self-contribution of up to ₹50,000 under Section 80CCD(1B)

Under Section 80C, self-employed NPS subscriber can claim tax deduction of 10% of their basic salary, up to ₹1,50,000

In addition to Section 80C, the subscriber can also claim tax deduction on self-contribution of up to ₹50,000 under Section 80CCD(1B)

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Additionally, if a salaried subscriber also gets employer's contribution, it can be claimed for tax deduction up to 10% of (Basic + DA) salary amount. under Section 80CCD(2). For this, subscriber should be onboarded via Corporate NPS.

For employers, all contributions done under Corporate NPS are counted as Business Expenses. These expenses can be accounted in P&L for saving tax on profits.

Promoters, CEO, CXOs, Directors or senior leaders can claim tax deduction under Section 80CCD (2) of up to 10% of (Basic + DA) amount on company's contribution under Corporate NPS

On premature exit from NPS, withdrawal amount is exempted from tax*

On lumpsum withdrawal after age of 60, withdrawal amount is fully exempted from tax**