Income Tax Alert: Section 80C allows up to Rs 1.5 lakh income tax exemption in a financial year. If an income tax payer includes Section 80CCD (1B), this annual limit can be raised up to Rs 2 lakh.
Income Tax Calculator: NPS or National Pension Scheme account holder can claim income tax exemption up to Rs 50,000 investments in one particular financial year. According to the tax and investment experts, this tax benefit is additionally given to the taxpayers under Section 80 CCD (1B) of the Income Tax Act. As per the investment experts’ opinion, the Narendra Modi Government at the center has already increased the income tax exemption limit from NPS maturity amount from 40 per cent to 60 per cent. So, in the coming times, an investor who has a lesser risk appetite can get attracted to the NPS scheme.
Singhal said that in the case of a government employee, he or she can enjoy a higher income tax deduction of 14 per cent of its employer’s contribution. So, if you haven’t opened your NPS account, you should open it on an urgent basis. NPS account can be opened online as well.
