Additional tax benefit under NPS-New Pension System
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. So, NPS should be considered as an investment option while planning for tax savings.