Are you an NPS CPS employee looking to save on taxes? You can claim an additional tax benefit of Rs. 50,000 under Section 80CCD(2) of the Income Tax Act.
This benefit is exclusively available to NPS CPS employees who contribute to the National Pension System (NPS).
NPS CPS stands for National Pension System—Central Government Employees. It is a pension scheme designed to help central government employees save for retirement.
How to Claim the Additional Tax Benefit? To claim the additional tax benefit, it would help if you contributed to the NPS CPS scheme.
The employer’s contribution to the NPS CPS scheme is eligible for a tax deduction under Section 80CCD(2). This deduction is over and above the Rs. 1.5 lakh limit under Section 80C.
Who is Eligible for the Tax Benefit? All NPS CPS employees who contribute to the NPS CPS scheme are eligible for the additional tax benefit.
This includes central government employees, state government employees, and autonomous body employees.
How Much Tax Can You Save? You can save up to Rs. 50,000 in taxes by claiming the additional tax benefit. This is in addition to the tax benefits available under Section 80C.
NPS CPS employees can claim an additional tax benefit of Rs. 50,000 under Section 80CCD(2). This benefit is exclusively available to NPS CPS employees who contribute to the NPS CPS scheme. By claiming this benefit, you can reduce your tax liability and save more for retirement.
Please remember the details regarding the tax benefits available under the National Pension System (NPS). Subscribers can avail of tax benefits under Sec 80CC D(1), up to 10% of their salary (basic+DA), capped at Rs 1.50 lakhs under section 80CCE.
Under Sec 80CCD (IB), an additional tax deduction of up to Rs 50,000 is available. All citizens of India, including those covered under the old pension scheme, can open an NPS account and receive tax benefits. Contributions for the additional tax benefit need to be made by 31-03-2016.