The NPS was first introduced as defined-contribution New Pension Scheme in January 2004 to replace the defined-benefit Old Pension Scheme for government employees.
The Income Tax Act allows individuals contributing to Tier-1 Accounts of National Pension System to claim combined deductions up to Rs 2 lakh under different sections – up to Rs 1.5 lakh u/s 80CCD(1) and up to Rs 50,000 u/s 80CCD(1B).
While there is no limit or restrictions on making amount of voluntary NPS contributions to claim tax benefits up to Rs 50,000 u/s 80CCD(1B), an individual has to fulfill some conditions to claim tax benefits of up to Rs 1.5 lakh u/s 80CCD(1).
Tax Benefits for Salaried Individuals
The NPS was first introduced as defined-contribution New Pension Scheme in January 2004 to replace the defined-benefit Old Pension Scheme for government employees, who joined their services after December 31, 2003.
Source: Financial Express
