National Pension System (NPS)
A government retirement savings scheme with extra tax benefits.
Definition
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by the PFRDA. It invests in a mix of equity, corporate and government bonds, and offers an additional ₹50,000 tax deduction under Section 80CCD(1B), over and above the 80C limit.
Example
Beyond the ₹1.5 lakh 80C limit, an extra ₹50,000 into NPS can save up to ₹15,600 more in tax at the 30% slab.
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