NPS Tax Benefit - Sec 80C and Additional Tax Rebate

NPS tax benefits are offered under section 80C - Section 80 CCD (1) & Section 80 CCD (1B) and Section CCD (2). National Pension Scheme offers these tax benefits to state & central government employees as well as corporate employees.
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• NPS Tax Benefit - Sec ...
Income tax saving on NPS can be availed on own contribution and on corporate employer's contribution. In addition, capital gains tax is also not applicable on NPS.
NPS tax rebate is available only on Tier 1 NPS Account and not on Tier 2 Account.
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राष्ट्रीय पेंशन योजना (NPS) राज्य और केंद्र सरकार के कर्मचारियों के साथ-साथ कॉर्पोरेट कर्मचारियों को कई कर लाभ प्रदान करती है। एनपीएस पर आयकर छूट का लाभ धारा 80 सी% u2013 धारा 80 सीसीडी (1) और धारा 80 सीसीडी (1 बी) के तहत स्वयं के योगदान पर और धारा सीसीडी (2) कॉर्पोरेट नियोक्ता के योगदान पर लिया जा सकता है। इसके अलावा, एनपीएस पर कैपिटल गेन्स टैक्स भी लागू नहीं है।
ये कर बचत केवल टियर 1 एनपीएस खाते पर उपलब्ध है, न कि टियर 2 खाते पर।
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In this video the detailed explanation of Tax Benefit related to NPS is delivered. The explanation is provided for Income Tax benefit, Capital Gain on Income Tax, Income tax on Partial withdrawal Amount from NPS. What is the treatment of Final Corpus and Pension amount received from NPS. Also we have explained :
How much deduction one can get U/S 80C of Income Tax ?
What happens to the Employer’s contribution of NPS ?
How can anyone get additional Tax benefit of NPS upto Rs. 50,000/- ?
How much benefit one can obtain on Tier 1 Plan ?
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Hope you liked this video “NPS Tax Benefits - National Pension Scheme”.

[@AssetYogi]

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[@dharmeshraghav8504]

जब भी मुझे कोई फाइनेंशियल इनफॉर्मेशन चाहिए तो में आपका चैनल देखता हूं।हमेशा बेस्ट मिलता है

[@sampathr2]

Very clear explanation regarding IT rebates. From your 3 videos, it gives a clear picture of NPS and its benefits to the young salaried group. I will recommend my son to go for this scheme, as it is exclusively covers the liability of a person, when any untoward happens to the family. Tks Sir

[@learningman9984]

I face very difficulty to understand these things but now I understood from this video to save tax using NPS. Thank you so much sir for explaining these things.

[@AssetYogi]

You are most welcome

[@rohitkumarshukla8511]

@@AssetYogi can I claim 80ccd1b without 80ccd1?? Answer will be highly waited.

[@surojitbiswas8414]

Sir apka video bohot helpful hain Main scheme leke rural area pe jake seminar karta hun aur apke video dekhke explain karna asan hota hain Thank you

[@AssetYogi]

Sunke achcha laga Surojit! Jitne zyaada logon ki help ho sake, yehi motive hai.

[@rs-tarxvfz]

मुकुल जी आपके वीडियो बिल्कुल क्रिस्टल क्लियर होतें हैं । CUDOS FOR MAKING EXTENSIVE VIDEOS.

[@AssetYogi]

Thank you for appreciation. RS

[@RaviGupta-ge1jp]

Hi Mukul - Great series of videos on NPS. Very information and clear presentation style. I wanted to point out 2 items in the 3 video series that were inaccurate and also have a few questions below: 1. Under Section 80 CCD(1) that allows an individual to invest up to Rs 1.5 lacs and claim deduction under Sec 80C, the limit is NOT 10% of gross income anymore. The limit is 10% of salary (in case the taxpayer is an employee) or 20% of gross total income (in case the taxpayer is self-employed/business owner). 2. The Annual minimum contribution to keep a Tier 1 account active is NOT Rs.500. It is Rs. 1000 per annum. Questions - Appreciate your responses to each: 1. Does the annuity at maturity have to be for life? Can the subscriber not choose a term-based annuity for say 10 years or 20 years? 2. What is the tax treatment on withdrawals from Tier 2 accounts (for non-government employees)? Will the withdrawals be subject to capital gains tax or regular income tax? How will this be calculated - basis, accretion, etc.? 3. Is it true that the Tier 2 deductions with 3-year lock-in that has been made available to government employees is expected to also be made available to private (non-government) employees and self-employed individuals in FY 2019-2020? 4. Do you have any insights or calculations or even reported data to share which asset managers are performing the best with highest yield's? 5. If I were to make an asset allocation change in my existing Tier 1 account, will the new asset allocation mix apply only to future contributions? Would my existing portfolio be also liquidated and reallocated to the new asset allocation mix? 6. Can I have a separate asset allocation for Tier 1 and another asset allocation for Tier 2 account? 7. Can I have a separate asset managers for Tier 1 and a different asset manager for Tier 2? 8. The current NPS statements are very basic. Are there any tools to get more detailed transaction-level and account performance details online? 9. I opened an account years ago when NPS was first started with a physical POP. Can I register directly with eNPS or CDA, etc. to be able to view and see my account and transactions online? 10. If I were to use eNPS or the mobile app to make NPS transactions would I be subject to lower or no transaction fees as I would not be using an intermediary such as the POP?

[@anoopjoy69]

I hope Mukul will respond with all details soon. If he start a Q&A session based in the quires , it would be awesome. And Ravi you asked really a valid question. All the best Mukul, cheers...

[@victorpatil]

The best channel to watch on you tube with clear explanations

[@AssetYogi]

Thank you for appreciation 😊

[@vivekmangsule611]

After including all the deduction, how to calculate tax amount on remaining income?

[@laxsundar]

बहुत खूब समझाया श्रीमान 🥰🥰🙏🙏

[@nageswariteja]

Thanks for the crisp and clear explanation

[@rishabhwadhwa6418]

The NPS provides several benefits to users 1) The most important advantage of is NPS is operated by government of India therefore ZERO Present agent commission.If you buy a pension plan from a non-governmental company then you have to pay a large commission but in case of investing in NPS there is no commission. 2)Tax benefits that can be availed under NPS are: Up to 10% of Salary, which comprises of basic and DA, under Section 80CCD (1) with an eligibility limit of Rs. 1.5 lakh under Section 80 C. Additional deduction of Rs. 50,000 under 80CCD (1B). 3) Returns/Interest A portion of the NPS goes to equities (this may not offer guaranteed returns). However, it offers returns that are much higher than other traditional tax-saving investments like the PPF. This scheme has been in effect for over a decade, and so far has delivered 8% to 10% annualized returns. In NPS you are also allowed the option to change your fund manager if you are not happy with the performance of the fund. Under NPS, the pensionwealth, which accumulates over a period of time till retirement grows with a compounding effect. 4) Subscribers can withdraw up to 25% of their own contributions before attaining the age of superannuation. This is, however, subject to some conditions. 5)Under NPS, PFRDA has increased the maximum age limit from 60 years to 65 years for joining NPS. NPS provides transparency and portability through online access of the pension account by NPS subscribers. 6) Person who opting for new method of income tax returns will get benefits of NPS(Tax benefits).Other investments like ELSS, and PPF are not longer to allow for tax benefits un 80C in new income tax return. Need Help in Investing in NPS Call @ 9166387878

[@simanchalapanda49]

My employer deduct 10% of salary which is around 50000 so can i invest 1.5 lakh under 80c in ELSS to save gross 2lakh

[@Voyage_Vignettes]

Thank you sir for this informative video. I invested in both NPS and ELSS fund. Can I show both under 80C for tax rebate ?

[@Nikhil-kg7tx]

Sir aap bhut ache se smjhate h Plz ek baar income tax p bhi ek series bnaiye...

[@virendragangwar8727]

All doubt cleared thank you very much sir

[@mahidar100]

Nice explanation with example.. one doubt.. when my 80c is already crossed 1.5 lakhs without nps.. how does nps would benefit me in the other tax saving sections.. please guide..

[@veshalmmane]

I have the same question in case you can guide us that would be great. Thank you for the videos.

[@abhinavsrivastava9137]

@@veshalmmane If 1.5 lakh is crossed you can get a rebate of Rs.50000 on taxes.

[@souravadak935]

@@abhinavsrivastava9137 If my 80C investment amounts to 1.5Lakh and further I invest 50000 in NPS, Will I get total 200000 as exemption ??

[@abhinavsrivastava9137]

@@souravadak935 Yes!!

[@rahulkumarsingh5162]

Explanation for 80CCD (1) & 80CCD (1B) required more attention....

[@kumarvaibhav4521]

He mentioned just about tax rebate..10% employer contribution is towards reduction of taxable income ...time waste kar diya isne

[@gauravgoel2597]

Can I check where my money has been invested and what is the annual return on it? It will help me decide my future asset allocation.

[@aashitoshmhaishale9182]

Employers contribution should add to income and deduct or directly take deduction..??????

[@sangramnayak3966]

Ur videos are so clear. Thanks for sharing.loved these videos a lot. Post more.

[@hameedseyyed1271]

Please upload a new video to calculate income tax for Maharashtra state government employees

[@jilanibashas]

Is therey any possibility of premature withdrawl? If yes then after how many years?

[@satkrapp7697]

it punishable if an individual doesn't claim deduction u/s 80CCD(1) ? During online ITR filing it is showing a warning message the amount is more than employer's data, when I cliam deduction u/s 80CCD(1) on the basis of online transaction statement of NPS.

[@viragnirmalkar]

I don't understand how tax is applied on annuity amount after retirement (Not earning anything) so not tax slab? Please explain in more detail

[@hiteshbohra6268]

Thanks bhai... plz suggest which fund manager is best??

[@simplybindas1545]

Section 80CCC(1) 10% is calculated for Basic + DA and not gross income. Need more clarification.

[@titu7492]

Kya government service pension jisko milegi wo bhi nps plan se pension le sakta hai.

[@shreematimaryadiintercolla5543]

Good video.sir agar example dekar batayege to achha rahega.jaise koi lecture hai ya si hai to iska example dekar.

[@vinaydeshpande47]

Sir you are explaining the topic very good ways

[@AssetYogi]

Thanks Vinay :)

[@VIKASKUMAR-lx6oz]

Pls make how nps is use to save tax according to tax slab.

[@abdullazariwala4229]

Tier 2 plan is also covered in 80c from this year in budget annouce for govt. Employees

[@anandsingh2465]

can you send any link plz ?

[@sarveo]

If one receives income after TDS deduction then is he supposed to pay income tax even if the income comes under 30% slab?

[@shivajikadam7946]

Very good information Sirji thanks

[@AssetYogi]

Keep learning Shivaji

[@akshaytiwari2070]

What is the difference between NPS share that my company deducts 1250Rs and enps where I invest individualy and have PRAN for that account

[@anilgawandeakot7954]

What is about bank interest benifit

[@mobasshirkausar7624]

TD is comes under 80C exemption ?

[@mmandal13]

Pls explain.. how to know details on annuity amount and period? Is this annuity amount dependent on the corpus accumulated at age 60?

[@koradiyahardik2089]

Sir vigha ane hactor converd thay te video banaviyo hto tame teni execl sheet download nathi thati

[@sachintambakhe4293]

Annuity ke liye jo amt hota hai ushipe tax lagta hai ya keval annuity se milne vala jo income/pension hoga ushipe tax lagta hai... Pls explain

[@ketangandhi2216]

Thanks for such a informative video.. My 80C limit is already exceeded with PF & Term insurance. Can i invest only 50K in NPS and claim tax benefits under 80CCD (1B) ?

[@ramanexplorer7671]

How to resolve this issue on the final payment page while doing new registration for NPS - "The response from the Payment Gateway for the payment attempt against this acknowledgement number is awaited. We request you to wait for the re-try of payment process for registration in NPS #" ?

[@anirbanrajkhowa9681]

That means if my yearly individual employee contribution under sec ccd1 is Rs 120000, then under sec 80c an investment of Rs 30000 will be enough!

[@amanforyou9493]

Great video sir 👍👍👌👌👌👍👍👍

[@AssetYogi]

Thank you 😊

[@devyanshallinone8633]

Hi sir aap 2023 ka Naya nps ke andar aaya badlav ka video banaye please sir 🙏

[@tara730]

Sir, additional 50000 ko pane ke liye hamein tier 1 mein only invest karna hoga? or we can invest combine in tier 1 + tier 2

[@sohilghoghari]

If my bucket is full in Section 80C with 1.5 L. In that case can I invest 50 thousand in NPS and be entitled for Tax Benefits under Sec 80 CCD?

[@aiamharsha]

Great video! How can one save tax on the salary above 40Lakhs ? Please make a video on this.

[@AssetYogi]

Noted.

[@aiamharsha]

@@AssetYogi oh my god, 😀 thanks so much for your reply

[@akshitmandaviya164]

hello sir, can we directly declare invested amount in 80ccd(1b) before 80c limit gets fulfilled to get most tax benefits ?

[@pawanneema1459]

Sir in the example if employee contributions in NPS is 80k than for taking 80ccd(b) benefit he needs to deposit 20k or full 50k

[@raresandeep]

thank you very much confusion cleared

[@AssetYogi]

You are welcome

[@nawjeetsingh]

If a person withdraws his 60 percent money at age 60 and he dies after a month, what happens to the remaining 40 percent of money? Does any dependent get it ?

[@nawjeetsingh]

@@anujpandey3743 what's this ?

[@makarandkshirsagar4033]

Sir please explain, if I get retired at 50, or due to some reason if I am not able to pay after 45 years. Also if after my retirement if out of the rest 40% I am receiving pension, then how can I pay tax on the monthly pension as I am no more employed so no tax slab

[@somabal7743]

I hv invested already Rs. 150000 in PPF in F. Y 20-21. Now my quary is that if I open a NPS account right now and make a deposit of Rs 50,000/- in the tier 1 account by 31 st March'21 then shall I get the total deduction of Rs. 2,00,000/- from my income like u/s 80C 1.5 lac and u/s 80CCD 1(B) RS. 50,000/-. Please clarify my doubts. Thank you.

[@akshaymalhotra2550]

NPS CRA vs NPS Swavalamban, which one is tax saving in them ?

[@tallyaccountingtaxation1]

GPF and EPF me kya difference hai, kya GPF me additional benefits milta hai, Sir is Topic par ek video upload kijiye please.

[@devinderkumar9988]

Sir health insurance ke liye kitne diduction Hoti hai apni aur parents ki konsa section hai ?

[@hsc2327]

Please tell rebate for PSU employee under 80 CCD(2)

[@KanhaiyaKumar-rl2qh]

Corporate change krne pe account port hota he?? Annuity kaise decide hota he kitna per month milega?? Aur yadi annuity complete hone se phle subscriber ki death ho gyi to paisa nominee ko milega?? Best kya he individual nps ya corporate??

[@pavandandotiya4875]

Great contains in simple form. Thx.

[@AssetYogi]

Keep learning :)

[@harishkuriyal4880]

You are a good presentatore, i really enjoyed your video....

[@AssetYogi]

Thanks Harish

[@kdreel2661]

Hello sir, I have a question. My epf=46000 Lic=46000 Ppf=58000 Total=150000 Now can i invest somewhere in Voluntary NPS to get get tax saving for Rs. 200000. Is there any options in 80C to get Rs. (150000+50000) for saving tax?

[@AshwaniKYadav]

Hello Sir, NPS-1 me monthly deposit amount flexible hai, kya (like-1000 or 5000 or 500)? 80CCD (1B) me investment ka matlab kya hai (kaun se investments isme count hote hain?

[@chocolatetraffic]

@accetyogi what if i have already invested 1.5lakh in 80c under other options. Suppose Now if I invest 50000 in NPS then in which category I can get benefits?

[@devmunda4337]

Sir, employer का contribution ko kya Gross total salary me v add किया जाता है

[@pramodjadhav8656]

Sir you explain it very well. But still I have some doubt about my NPS account. How u can help me.

[@apmchinganghat001]

Sir muze 10,000 tax aa raha hai to muze N P S me kitane paise saving karana hoga

[@Skriiiiiiiiiiiii]

My new employer is not contributing to nps? My previous employer used to contribute in nps. What should i do in this case for more tax rebate?, i am already contributing 50k individually

[@sparklinglittleangel]

@assetyogi Mukul sir i have a question if you can help me? As you said in the previous video investor in NPs can withdraw 60 % of the total amount and the remaining would be a monthly pension let's say if an investor dies at the age of 61 what will happen for the remaining amount ?

[@AssetYogi]

Legal heir or nominee will continue receiving the benefits

[@sparklinglittleangel]

@@AssetYogi sir one more question so child will also get the same and there is no age bar for corporate employees like we do have for govt employees children which is 25 yrs

[@ozaparul5728]

Sir agar government employee hoga to kya hoga ... Hamara 10 ,%on basic per cut jata he or gov itna hi contribute karta ho to Kitana deduct hoga

[@ateebkhan6626]

can I can distribute my NPS contribution into 80 C and 80 CCD (1B) for ITR.

[@vivian410391]

Please make a video on NPS specially for NRI with Tax Benefits. Thank you.

[@rinkukushwaha7571]

Sir railway loco pilot ki salary se nps tier 1 Me deduction (10% Of basic salary+ D.A. ) se jyada kyo hota h . Please tell me

[@drhemalmodi9026]

Thanx for explaining

[@AssetYogi]

My pleasure

[@Gogreen367]

Hello sir , I have subscribed NPS tier 1 scheme, but having doubt,. Would my spouse get pension or not ???

[@dawoodahmad1048]

*_Thankx For This Great Information_*

[@ozaparul5728]

Nice n good .. sir can u suggest me if i m state gov employee and gov start our cpf account..so in yr i invest in nps 50000 amount it goes to that tier 1 fund.. what this amount I get in future and how much I get and my nps amount is i kept can I withdraw any time or can I change my tier account for nps mean tier ii me kya me nps save kar sakte he

[@AbhijitDas-wo3bp]

Very well Explained Sir..!!😊👍

[@AssetYogi]

Thanks and welcome

[@azadsinghyadav8171]

Govt. employee Sbi uti LIC ki scheme me hi investment kar sakta h ya scheme change kar sakta h. Please tell...

[@dr.pankajgupta5664]

Government employees ko nps me ccd(2) me benefits millta ha (employeer contribution )

[@kritikakumari8061]

If I pay tution fees for my sister, can that be under 80c?

[@abhishekkaushik4827]

Sir, can you please confirm if the total tax rebate can be more than 200000 including 80C, 80CCD(1b) and 80CCD(2).

[@sauravalok2357]

Same query

[@dramitsachan2377]

Mukul bhai please clear my confusion regarding 80ccd(2).. I am confused that 80ccd2 is only for corporate employees or for government employees too..... Please clear my confusion

[@arunavb]

Employer's contribution should be added in gross salary or not ???

[@AssetYogi]

Yes

[@maheshmeena928]

50,000 additional jo app na ad kiya kya 80ddbi wo 10% ka hi part tha ya additional add kiya

[@sekharsingh9072]

I am investing Rs.150000 in ppf account yearly now i am able to tax benefit in nps Now i can get tax benefit in nps

[@kumargaurav8887]

He isn't replying to comments

[@ANIMEEDITZ278]

Bhai nps ac konse bank m khulwasakte

[@alokpurukhat989]

Wheather psu employee get additional tax benifit of 50000 by investing in NPS

[@archu7028]

Verry useful information..in a easy way

[@AssetYogi]

Thanks a lot

[@mayurpatil5811]

Sirji, 80c ke under nsp me invest karna compulsory hei kya. Ya fir sirf 80ccd me nps amount add kiya to uska rebate milega?

[@shavatzalpuri3416]

Sir, came o know that corpus is not tax free, could you please explain more in that segment , ie after mauturity whether the corpus is tax free or not and how we can proceed further.

[@sahinsarkar7293]

Corpus is tax free upto max of 60% which was withdrawn in lumpsum form. But the annuity part is taxable as per income slab

[@sanjzeevkhandelwal]

How much would be the tax out go for NPS tier 2 account say I invest 5 lac and withdraw complete amount say 7 lacs (principle+returns) after 5 years? Thanks!

[@ayushhajela8198]

Hello Sir, I have one doubt do we have to open two separate accounts to claim tax rebates under 80C and 80CCD(1B) each or how will it be ?

[@rohitkumarshukla8511]

No

[@ravibhushanpathak4882]

Nps contribution is eligible if one switch to ops please reply

[@seemakurthikumarraju]

in ITR filling which section we have to enter NPS CONTRIBUTION AMOUNT by a salaried employee,80CCD(1) or 80C ,please tell now

[@VishalGupta-nd3on]

Very informative video sir... if you could please clear my one doubt... If I deduct tax amount of 1.5L under 80C using any other option except NPS say ELSS or PPF..can I deduct additional 50k under 80 CCD(1B) NPS without any deductions under 80C...

[@RajivKumar-ee7xv]

Did you find your answer, I have exact same question?

[@vinodchambole1131]

@@RajivKumar-ee7xv Did you find your answer, I have exact same question? 😀

[@bhavna569]

Can u suggest some course name to enhance finance management , stock market etc

[@arvindynr]

how to put 50k in 80CCD(1B)? do we have to tell the employer?

[@VitalSweat]

What are the other alternative against NPS in which we don't need to wait for 60 years of age..?? How to get pension from the age of 45 itself??do we have any plan like that ??

[@umeshghane]

You can invest in PPF at the age less than 30 years. Which would automatically be similar to getting lumpsum pension at the age around 45.

[@knowledgematters2857]

Whatever the 60 % i get after retirement can i deposit lumpsum amount in tier-2 account . And is that lumpsum can be deposited with 100 % in corporate bonds ?? Thanks in advance

[@hiteshmori5942]

Sir, I central Gov. Employe... 》 My Investment in PPF & ELSS = 140000 》 My NPS Investment From salary = 60000 How to Deduction claim 80C, 80CCD(1) & 80CCD(1B) ???