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The National Pension System (NPS) is a Central Government scheme that allows individuals to invest during their earning years in order to receive a pension after they have retired. Pension is generally available to those who are employed by the government, but rarely for those who work in the private sector or the unorganised sector. The NPS aims to fill this gap by allowing everyone to prepare for a pension during retirement.

Tax benefits of investing in NPS

Investments of up to ₹1.5 lakh in the National Pension Scheme qualify for tax deductions under Section 80C. Furthermore, investments of up to ₹50,000 can be further claimed for deductions under Section 80CCD(1B).

Check out this article to learn more about NPS.

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