What is NPS
The National Pension Scheme (NPS) is a pension and investment system developed by the Indian government to give long-term financial security to Indian residents. It provides an attractive long-term saving alternative with a secure and regulated market-based return for correctly planning your retirement. The Pension Fund Regulatory and Development Authority (PFRDA) regulates it, and it provides a secure but transparent platform. When people reach retirement age, they get a lump sum payout as well as regular income, allowing them to live a stress-free retirement.Why should one invest in NPS?The Advantages of Investing in NPSHow NPS worksIn what areas are money invsted within NPSeNPS Facilities
Tax Benefits under NPS
A user can invest up to ₹2,000 in order to save 62,400 in taxes.
To be qualified for a tax deduction under section 80CCD, you must invest up to ₹50,000. (1B) – A savings of ₹15,600 in taxes.
To be qualified for a tax deduction under section 80CCD, you must invest up to ₹150,000. (1) – ₹46,800 in tax savings.
Savings of 46,800 under section 80CCD (1) are an alternative to saving 46,800 on ₹150,000 under section 80C.