Contribution to Pension Scheme

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

  1. Navigate to File > Deductions
  2. Select the relevant sectionSelect the relevant section
  3. Enter the investment made during the year

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