explained: tax benefits under national pension system (nps)
National Pension System (NPS), a government- Pension planning instruments sponsored by the fund\'s Regulatory and Development Authority (PFRDA). In NPS, government employees pay a pension from a monthly salary and a matching contribution from the employer. Then, as stated on nsdl, these funds invest in the designated investment plan through the pension fund manager. com. NSDL has been appointed by PFRDA ( National Securities registration Co. , Ltd) As a central record Agency (CRA) National pension system. Permanent Retirement Account (PRAN) Each subscriber and maintenance database for each permanent retirement account, as well as recording transactions related to each PRAN. All employees who join the service of the central government must participate in the NPS ( (Except Armed Forces) Central Institutions of Self-Government on or after January 1, 2004. NPS offers two types of accounts: the first and the second. Although the first-level NPS account is strictly a pension account that does not allow withdrawals, the second-level account- Known as an investment account Is a voluntary savings account associated with PRAN. Unlike Tier 1 accounts, Tier 2 accounts offer greater flexibility in terms of withdrawals. You can withdraw from the secondary account at any time. Under section 80 CCD, the employee\'s own contribution is eligible for tax reduction (1) Income tax bill of up to ten per cent of wages ( Basic price allowance). This is within the total ceiling of Rs 1. Under section 80 CCE of the Income Tax Act, 50 lakh. Up to ten per cent of basic and expensive allowances ( No monetary cap)under 80CCD (2). This rebate exceeds the 80 CCE limit of Rs 1. 50 lakh. Employees can voluntarily invest 50,000 rupees (or more) According to section 80ccd 1, apply for tax deduction to the NPS class I account (B) , Subject to the highest Rs. 50,000. Get live coverage and updates from India and around the world on NDTV. com. Watch all live TV on NDTV 24x7 and on. Like us, or follow us, find and update.