Guide to Tax Saving Through National Pension System (NPS) [with illustration on tax saving for corporate employees] Tax Savings through NPS One of the key advantages of retirement planning through NPS is that while saving for your future, you get to enjoy tax benefits today, as NPS comes with a unique mix of Tax advantages. We are presenting an illustration, which will provide you with a brief idea as to the amount of tax you can save under NPS. The illustration has been prepared with the following assumptions that: Assuming standard deduction NPS is your only Tax Saving component tax rate as per financial year 2018-19 Under the present tax regime, if your annual salary (basic +DA) is Rs. 4 or 10 Lakh; your contribution is Rs. 0.40/1.00 Lakh, you can claim the complete amount as tax deduction u/s 80 CCD(1) within the overall ceiling of Rs. 1.50 Lakh. But if your annual salary is Rs.20.00 Lakh and your NPS contribution is Rs.2.00 Lakh, ...
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