The National Pension System (NPS) has become increasingly popular among the working class. The reason for this is that this investment medium is getting better returns along with income tax exemption. Apart from section 80C of Income Tax, one gets the benefit of tax exemption on an additional amount of Rs 50,000 by investing in NPS.
In such a situation, do you know that if your employer (company) wants, can help you get income tax exemption by contributing to NPS on his behalf. If you do not know about this, then we are giving you information about this in detail.
In this way you can get tax exemption
You can get income tax exemption in two ways by investing in the National Pension System. If you invest in NPS on your own, then you can get income tax exemption under section 80CCD (1B) of the Income Tax Act on investments up to Rs 50,000 annually. If your employer invests 10% of your basic salary + DA in NPS, you can get income tax relief under section 80CCD(2) of the Income Tax Act.
Relief like this
Tax Exemption on Employer’s Contribution The contribution made by your employer to the National Pension System will also be considered as your contribution according to the exemption of income tax. This means that if your employer invests 10% of Basic and DA, then as an employee you can claim income tax exemption.
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