NPS
NPS
The new National Pension System (NPS) is a retirement savings system in India where retirement benefits are based on the contributions made by you and your employer. NPS provides a safe, flexible and convenient way to save for retirement. The NPS offers you the opportunity to choose from different investment funds, depending on your risk appetite, time to retirement and liquidity needs.
There Are 2 Tier of NPS
Tier 1
NPS Tier 1 account investments up to INR 1,50,000 per financial year qualify for tax deduction under Section 80C of the Income Tax Act, 1961. Furthermore, an additional contribution of up to INR 50,000 also qualifies for tax deduction under Section 80CCD (1B) of the Income Tax Act, 1961.
Tier 2
No tax benefit is available for contributions made to NPS Tier 2 account.