What tax benefits does NPS offer?
Compared with the Employees' Provident Fund (EPF), the retirement planning scheme National Pension System offers several flexibilities. Take for instance the host of investment options for all and higher equity allocation for younger investors to boost long-term returns. But for many, tax benefits under the old tax regime continue to be NPS' chief attractions. You can claim NPS contribution as deduction under section 80C up to the overall limit of Rs 1.5 lakh. Then there is the additional deduction of Rs 50,000 under section 80 CCD(1B). Employers' contribution of up to 10 percent of your salary is eligible for tax relief under section 80CCD(2). This tax break is available under the new tax regime too.