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Tax Benefits Under NPS (National Pension Scheme) for FY 2024-25

What are the Income Tax Provisions under NPS?

Type Section Maximum Deduction
Deductions if an employee/self-employed makes the contribution 80CCD (1) 10% of salary (Basic +DA) [or 20% of gross total income of self-employed] up to the ceiling limit of ₹1.5 lakhs
Self-contribution to NPS 80CCD (1B) ₹50,000
Deductions if the employer makes the contribution 80CCD (2)  14% of salary (Basic + DA) for all sector employees

What are NPS Tax Benefits on Tier 1 & Tier 2 Accounts?

NPS Tier 1 Account and Tax Benefits

NPS Tier 2 Account and Tax Benefits

Are NPS Returns Taxable?

FAQs about NPS Tax Benefits