NPS additional tax deduction on saving of Rs. 50,000 official letter Income Tax of India

Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961 Circular No. 29/2017 : - 5 December 2017 Page No. 37It is emphasized that as per the section 80CCE the aggregate amount of deduction under
sections 80C, 80CCC and Section 80CCD(1) shall not exceed Rs.1,50,000/-. The
deduction allowed under section 80 CCD(1B) is an additional deduction in respect of
any amount paid in the NPS upto Rs. 50,000/-. However, the contribution made by the
Central Government or any other employer to a pension scheme u/s 80CCD(2) shall be
excluded from the limit of Rs.1,50,000/- provided under this section.

 

Central Recordkeeping Agency (National Pension System)     (CIN U72900MH1995PLC095642)

Dear Subscriber, 

 

As you are aware, NPS is a Government of India initiative for effectively planning for retirement. NPS allows you an additional tax deduction on saving of Rs. 50,000 over and above the limit of Rs. 1.50 lakhs available under section 80C of the income tax Act, 1961. The exclusive tax benefit of Rs. 50,000 u/s 80CCD(1B) has made NPS an attractive investment option for saving tax. With the ending of the financial year round the corner, NPS should be considered as an investment option while planning for tax savings. To take the benefits of this tax saving plan, you may approach the Nodal Office or visit www.npstrust.org.in for making online contribution.

 

Thanks & Regards,