Retirement planning is an important aspect of achieving financial security by the time you grow old. NPS or National Pension Scheme is a retirement savings scheme and investing in it can help you claim tax benefits.


Tax benefits of NPS under the new regime

Salaried employees can claim a deduction under Section 80CCD (2) for NPS contributions made by their employer.


Tax benefits of NPS under the old regime

Under the old tax regime, you can claim a deduction under three sections:

  • 80CCD (1): Covers your contributions, grouped with other 80C deductions like PPF
  • 80CCD (1B): Additional deduction up to ₹50,000
  • 80CCD (2): Employer contributions


Steps to Claim the Deduction

  1. Navigate to File > DeductionsNavigate to File > Deductions

  2. Select the relevant sectionSelect the relevant section

  3. Enter the investment made during the year


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