4 NPS tax benefits | National Pension Scheme se Tax kaise bachaye

[@MohsinRaza-ch2wx]

Nicely presented, one thing I think is EEE regime doesn't apply to NPS. At maturity You are compulsorily required to keep aside at least 40% of the corpus to receive a regular pension from a PFRDA-registered insurance firm. Of the remaining 60%, 40% is tax-free. The remaining 20% will be subjected to taxation as per your tax slab.

[@ETMONEY]

Thank you. Please watch the ETMONEY Answers episode on NPS. This 40% query and more commonly asked answers on NPS have been answered there

[@BibinVenugopal]

@@ETMONEY Also the pension recieved monthly is taxable

[@MayankRathore4]

Hi, thank you for explaining about NPS in such simple way. I have a question! If I have completely covered my 80C bracket of 1.5lakhs with other options like PF or Mutual Funds, can I just invest 50,000/- in my NPS annually and claim the additional 80CCD(1B) tax exempt? Or Do I have to invest 2,00,000/- to NPS annually (1,50,000/- + 50,000/-) to claim the additional 80CCD(1B) tax exempt?

[@naraharibhargav3948]

Exactly my doubt have you gotten the ans ??

[@srisridhar7420]

No, that's not required. You can claim 50,000 in NPS under 80 CCD (1B) if you have exhausted the 80C bracket.

[@adilbsh]

Same question I have

[@prakashbhoi5143]

80C may without NPS contributions 150000 limit khatam ho jati hey to maximum kitna amount ka invest kar sakte hey tax benefits ke liye self + employer contribution amount milake.

[@MrUmi78]

Thank you for your information. Sir as per my knowledge, we must include the employer contribution as our Income first, then only we can deduct it in 80CCD(2).

[@ravireiky]

Short, oriented and clean explanation. Thanks.

[@ETMONEY]

Glad you liked it.

[@ghostrider-hk5jm]

Sir can i invest only 50k in nps and show investment under 80CCD(1B) to save tax or 2 lakhs investment is must in nps to get that benefit?

[@preetisharma644]

Very good knowledge you gave us

[@ETMONEY]

Thanks and welcome

[@seemasharwa06]

Such a nice video. It's clear my all doubt's. Thankyou sir

[@ETMONEY]

We are glad you found the video helpful

[@mayurnaik5620]

How much amount to invest monthly in NPS to save tax benefits.

[@pradyumnas7068]

i want to add one point .. the 40% of our corpus will be invested in annuity plan and the pension which we receive is taxed according to tax bracket

[@sklochan]

Kaya 50000 ka additional tax benefit new tax regime mein milta hai ki nahi.

[@DEVENDRASINGH1000]

Can we invest 1.5L in ELSS and 50,000 in NPS, thereby claiming 1.5L on ELSS for 80C and 50,000 for 80CCD (1B) ?? Is there a condition that NPS should be part of both 80C and 80CCD (1B) ?? Thank you for the great video !!

[@TheALJain]

no, there is no such condition. if you have your 80C bucket full with other investments,, you can claim max 50000 in 80CCD(1B), though you can invest more, but you get tax benefits only upto 50K in 80CCD-1B

[@ravimaxdigitals]

@@TheALJain are you sure? I mean can i invest 50000 under PPF, 50000 under NSC, 50000 under ELSS, 50000 under NPS 80CCD1B and get 2,00,000 tax benefit???

[@harshvardhanmaheshwari3323]

Whats the final and confirm answer to this question ? I also wanted to know.

[@rgvyt5110]

80CCD is entirely separate. Those 50k can be claimed irrespective of whether you are using 80C bucket or not.

[@suniladiyodi]

Anyone got exact anwer for this query ?

[@jeevalatha4268]

Thank you so much it's helpful for my exams ❤️

[@Nagaprasadvlogs]

Well made video..crisp and clear

[@unknowntech7]

excellent explanation, thanks

[@ETMONEY]

You are welcome!

[@ahmedvnit]

Wong info... nps is eee but only 60% of maturity amount. 40% u have to take as annuity plan which is taxable in the years u get it

[@johnsonfernandes8517]

and only 40% out of 60% withdrawn is tax-free. The rest of the 20% is taxable.

[@proud2318]

But hopefully when you retire you may not be in 30 percent tax bracket

[@akshaykumar-lo8xt]

Sir jo aapne 3 rd point bataya hai usme 90000 employer jo add kerta hai vo nps account mai save hote hai gross salary mai to nahi judte to hum uska deduction kaise le that's my doubt if I am able to understand.. Because I was aware 3 point ist and 2nd 3rd point is new so calrify it.. Because this is big beneficial for us 90000 tax deduction over 2 lakh 80c and 80ccd 1 b..

[@1109varun]

If in case I invest 1.5L in ELSS Or PPF and then can I can claim tax deduction of ₹50000 in NPS in section 80Ccd (1B)

[@brinthamathi.b3739]

Yes

[@utsavmertia]

Can a director of a company take benefit of nps 80ccd2.

[@dineshbiladi8078]

How to invest ₹ 50000 under 80CCD (B1)? Please explain process .

[@foramshah4527]

Thank you so much for the video! I have a question: If I'm planning to go abroad for further studies in the future then is it viable to invest in the scheme right now? If yes, what would happen to my account when I move abroad? (Note: Currently I'm a salaried person and I wish to come back to India post my education)

[@12398240]

Could you please throw some more light on the calculation of tax savings of ₹62400/- for 30% tax bracket( running time 2: 22). Thx. Nice video.

[@mohitchandawat2423]

Sir I have 2 queries... 1) Agar me 1.5 lac 80c me invest kar leta hun without considering my nps amount, tab kya jo mera nps ka wo amount, jo mene 1.5 lac me consider nahi kya tha wo amount me extra 50k section 80ccd(1B) me show kar skta hun kya ? 2) 1.5 lac under 80c me kya mera or employer dono ka nps amount consider hota hai ? Ya sirf mera deduction nps amount hi 1.5 lac me consider hoga ?

[@MrMukherG]

Very well explained

[@ETMONEY]

Thanks

[@RAJESHShah-vo1hm]

Excellent knowledge

[@aswinck97]

After investing, how many days it will take get reflected in our NPS account? I have invested 2 days back, still no update abt the investment in the account Can someone help on this?

[@ravimaxdigitals]

HI. To invest under 80ccd1b is it mandatory to invest in 80ccd1 before?

[@jasvindersinghkohli6374]

is this query answered i too have the same doubt?

[@sachinkumar-ly6cb]

Thanks Bhai

[@Schoolbookidea]

Very nice video sir

[@ETMONEY]

Thanks and welcome

[@adarshchacko6137]

Please do a video on withdrawal too.

[@srikanthtumma7401]

Hi ETmoney, what is the maximum amount can a employer contribute towards NPS account of employee, if 10% of Basic becomes annually 10Lakhs is it tax free

[@dilipchenani8537]

Nicely presented. Great info.

[@milanvidaja8688]

Sir can I invest 2.00 lakh in nps at my age 58 and withdraw 60% at my 60 retirement age? Will I got Tax exemption on full 2.00 lakh?

[@Sangeekarikalan]

How can we claim 90k in the example at 3.09

[@subhankar81]

80 ccd 1b me benefit lene ke liye kiya (150000+) nps me invest karna jaroori hai?....ya mei 150000 80c ke dusre options jaise ki pf ppf etc me invest karne ke baad 20000 ya 30000 nps me invest karke bhi 80ccd 1b me benefit le sakta hoon?....secondly, in that case tax benefit kitne ka milega?

[@ETMONEY]

Hi, Yes. You can invest the 1.5 lakh of Section 80c in any option and still get the benefit of up to 50k in NPS in the section you mentioned. The tax benefit will be on the amount you will invest up to the limit of 50k. So if you invest Rs. 20,000, you will get benefit on that only Regards, Team ETMONEY

[@subhankar81]

Thank u so much for clearing my doubts.

[@akshaykumar-lo8xt]

@@ETMONEY sir I'm confused if max limit inveting in nps is 50000 acc to sec 80d u mention than when u calcualte deduction amount basic plus ida u took 10 percent of that 90000 u add in already added 1.5 80c plus 0.5 80d than why u further added 90000 for taking deduction .. 90000 u can only ivestment deduction u will only get limit the 50000 please clarify this other all things are write thanks

[@AkshaySingh-qs2qm]

can i invest 1.5 lps in ppf and 50K in NPS to get addintion 50k benefit in 80 C(1)

[@sandysandy418]

Initially, it was EEE but now it is EET. Please confirm and explain.

[@ETMONEY]

NPS accumulations are still EEE. The taxation part happens after the accumulations are reinvested in an annuity plan.

[@littlestaroo1]

You people should update the content with the recent changes to tax exemption etc.. in fact all these topics which is subject to changes and it would be great if you do so. Else this will be a confusion for people like me watching in 2021 or so on

[@srinivasansrikant7341]

Very nice and informative video in a summarized manner. Good effort.

[@ETMONEY]

Thanks

[@srinivasansrikant7341]

@@ETMONEY very prompt reply. Nice, again. 👍

[@kirtiladha1127]

What if I have invested 1.5 Lakh in PPF under 80C. Can I get additional 50,000 deduction under 80CCD by investing 50000 in NPS?

[@parthchaudhari3720]

I have the same question! Please if you find the answer share with us.

[@sanketnegi1]

As far as I understood Yes 1.5 in 80c +NPS tier 1(50k)

[@inspired784]

Yes you can claim Tax exemption for both PF or PPF and NPS. Basically over n above 1.5 lakh

[@p_p21]

Why you all only take example of private employee some times have some time government employee also as a example. 😀 I want to know that if govt employee is already having deduction under 80c then can make another 50k contribution to NPS and save 50k?

[@Kuzeyvinayak]

Mere 80c ka total 160000 hai jisme 60000 nps ka hai jo ki mere department me deduct kia hai. Kye me nps ka 50000 80ccd(1B) me show Kar sakta hi aur remaining 10000 80c me show krke 40000 kisi aur me invest krke like mutual fund total 200000 saving Kar sakta hua kya

[@barkhamadnani4336]

62400 tax saving in 30%slab rate means?

[@debashisdebnath6035]

Can we declare tax for nps only in 80ccd(1b) without declaring nothing in 80c/80ccd(1)?

[@charuawasthy100]

Sir plz clear my one doubt in my gross salary employer contribution is not added.its dirctly get deposit in nps account.still i can take benefit of 80 ccd(2) and also of 80 c and 80ccd(1)

[@vaibhavtiwari5838]

Can we claim 1.5 lacs in 80c for other elss n lic and 50k extra for nps I.e. investing only 50 k in nps thereby total exemption of 2 lacs

[@PratikLawate]

I think yes

[@sanjulamani2290]

Kindly tell me iam salaied employee section 80ccd2 employer contribution we have to add to our gross salary to calculate income tax?

[@faizanlala5415]

Hi can some 1 guide me cn i invest 1.5Lac in elss fund and 50k in nps would it give deduction of 2L? Or I need invest complete 2lac in NPS to get 2lac deduction

[@Ritesh8200]

What is definition of Government ? Can state Government employe can take 14% deduction ?

[@ajayjaiswal7365]

Hi, my 80C limit has reached (using insurance payments, ELSS & pff), so can I just invest 50k in NPS and claim under 80CCD(1B)?

[@AkshaySingh-qs2qm]

+1

[@creativepoint92]

Madam, my NPS account opened after 1 year of joining. In this time there is no deduction for NPS. Now, can it possible to deposit pending 1 year of NPS deduction.??? Please reply🙏🙏🙏🙏

[@abhishekbarat2373]

My current employer dosent support NPS, however from my previous organisation .I have NPS tier 1 account ,can I voluntarily contribute and seek benefit under NPS 80CCD2

[@Azalanias]

Great

[@SuriyaGayathri]

Hello, When you say about NPS returns, is it the amount in Tier 1 account? Or, the sum of amounts in both Tier 1 and Tier 2 accounts?

[@vikashbrave1]

Can We claim tax benefits under 80C for amount paid for spouse NPS

[@sarathchandra1575]

Hi sir, under section 80C,if we claim 1,50,000 under 5 year fixed deposit .can we claim remaining 50,000 (of 2 lakh) of NPS under section 80ccd? Or else total 2 lakh is claimed under NPS only? Please clarify the doubt

[@sandeep.ranjan_]

Pls answer. I have the same doubt.

[@prasthak]

The answer is there in the video itself. In the video he clears that NPS is listed in 80c section. That means that if you invest 2 lacs in NPS Tier 1, then you can claim 1.5 lacs under 80c and remaining 50k in 80ccd (1).

[@Bishwakec]

Only Tier 1(lock in till 60 year age) of the National Pension Scheme is eligible for deduction under Section 80CCD (1b). Investments in Tier 2(no lock in, anytime withdrawal) do not count.

[@arindamchakraborty4131]

1.5 lakh is under 80C ,can be claimed by any other investment under 80C, 50000 can be claimed separately under 80CCD for NPS.

[@gyanakrishana6400]

Standard Deduction 50000 hai. Or PF deduction 42707 hai to kya Muje 92707 deduction milege na??

[@f_mak007]

Yes you will get benifit

[@f_mak007]

80C is not correctly explained. My 80C is already full with (PPF + LIC etc ) so if i invest in NPC then can i take it's benefit in 80 CCD(1B) ?

[@bandianand4549]

Yes u can

[@anoop6841]

Is it allowed to withdraw 100% of investment + benifit on 60th age of investor?

[@kodidasubabji3017]

Due to Carona, we can invest in NPS upto 30.06.2020 and claim IT deduction for FY-2019-2020 (AY 2020-2021). Is it correct?

[@ETMONEY]

Hi, There is still some confusion around whether the date for investing has also been extended or it still remains the same. We recommend you playing it safe and investing before March 31st. Regards, Team ETMONEY

[@adhinathm.lokhande5890]

Sir I working under Central Govt Employee. My Provident Fund Subscription deduct from my monthly Salary. Can I Open eNPS Account for getting Additional Tax Saving 50000 Rupees ?

[@barathmech4577]

Is ET Money only to the hindi speaking ppl??

[@sony3956]

If we invest in tier 2 then after 60 years of age full amount from tier 2 is tax exempt pls? I mean 60:40

[@sony3956]

Pls advise

[@TheALJain]

@@sony3956 tier 2 is not under exempt category, it is like your regular FD. you invest in it with some 7-9% returns as per market , while there is no blocking period, you can take the money out of tier 2 account as per your will anytime, and pay Tax on the returns as per your tax bracket.

[@sony3956]

@@TheALJain Thanks 🙏 for the clarification..... can I transfer the amount from tier 2 to tier 1 to save the tax at later part pls

[@TheALJain]

@@sony3956 yes tier 2 to tier 1 transfer can be done.. it is like an new investment in tier1 as per that day NAV for your selected tier1 plan.

[@sony3956]

@@TheALJain after moving to tier 1 , I can save the tax exemption for full amount pls?

[@akansharawat8756]

Sir, you said that all money we received is tax free.. I read somewhere that 40% of amount, from which we need to buy insurance pension.. that is taxable..??

[@ETMONEY]

Hi Akansha, NPS in itself is tax-free. As you mentioned, you have to buy an annuity plan from an insurance company, which will then give you a pension. The entire 40% is transferred to that insurance company without any tax deduction. Now, this pension amount you get is counted as your income and you will have pay tax as per tax bracket. Regards, Team ETMONEY

[@saurabhgupta7785]

Hi, If my 80C bucket has some amount left. Then also can I claim my NPS contribution under 80CCD(1B).

[@RNBlogTravelsforFood]

Can a subscriber increase/decrease his contribution in ETMoney app for NPS-SIP

[@tusharrao8649]

nice content👍

[@vasco5784]

Sir i have a question that nps have yearly 1000 contribution..but it pay one time or i pay 100 rupee per month!!??

[@ETMONEY]

Hi, You can do 1000 at one go or invest 100 per month. It is completely up to you.

[@PorMynta]

Do we have to claim tax every year or only after withdrawal??

[@PorMynta]

@@ETMONEY tqsm for the response, appreciate it 👍 Since I don't want to engage tax advisor, I just want to clarify one more thing, If my investment is below the taxable zone - nned nt file ITR ,right?? I can just leave it like that

[@PorMynta]

@@ETMONEY okay , tqsm once again 👍

[@rinkuboruah1576]

Et money m nps abhi lumpsum m h.sip m invest korene hota to atsa hota.

[@ETMONEY]

Hi, Hum bahut jaldi NPS main SIP karne kay ka option launch karenge. Stay tuned. Regards, Team ETMONEY

[@santoshaleri3407]

Sir employer 14% contribute but 80ccd2 limit 10% taxable 4%

[@ajaySingh-zd8rw]

👌

[@nickdawson1075]

Want to know I. Am govt employee pay grade 4800 ➕ 17 Percent DA how much govt will deduct on nps.. Every month my age 30 what I will get as pension amount at time of retirement and lumpsum .. I will also going for PPF 1.5 lakh yearly 2020-2021 should invest both in order to get tax exempt...what I will pay in now.. What Indian government paying on that

[@ravijani9141]

Is NPS still in EEE category ?

[@rahultalar]

Thanks for the Detailed video. As my 80C component is exhausted with home loan+ insurance. Is it possible to have save tax in below way a) Deduction for employee’s contribution 80CCD(1) : 0 b) Deduction for employer contribution 80CCD(2) : 10% basic of salary So my question Is it mandatory to have self contribution in NPS to avail, tax benefit on amount for Employer contribution in NPS Thanks

[@manoharkrishna7905]

I also have same question. Pls answer

[@rgvyt5110]

No, it's not mandatory.

[@deepanshupunia6908]

And i think 2,90,000/- tax deduction is misrepresented here.... claimed Rs. 90,000 would come within the limit of 2,00,000/- itself and not over and above it... @ETmoney , kindly correct me if wrong..

[@sukhdev761]

Raju

[@naveenkr6538]

As said, if NPS is EEE (no taxable so). What is the point of applying tax exemptions (80d, ccd.. Etc). Apprieciate if you can clarify this. Thank you

[@billubilu6121]

NPS is not EEE. Don’t spread rumours

[@venkatselva1735]

Also, post the video in English

[@ramanareddysagili3626]

Explain in English man

[@sklochan]

Kaya 50000 ka additional tax benefit new tax regime mein milta hai ki nahi.