Contribution to Pension Scheme
Retirement planning plays a crucial role in ensuring financial stability during your later years. The National Pension Scheme (NPS) is a government-backed retirement savings plan that also offers attractive tax benefits.
Tax Benefits under the New Regime:
- Section 80CCD (2): Salaried individuals can claim a deduction for contributions made by their employer to NPS.
Tax Benefits under the Old Regime:
You can claim deductions under the following sections:
- Section 80CCD (1): Deduction for your own contributions (included within the ₹1.5 lakh limit under Section 80C).
- Section 80CCD (1B): Additional deduction of up to ₹50,000 for self-contributions.
- Section 80CCD (2): Deduction for employer contributions (not included in the 80C limit).
Steps to Claim the Deduction
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