What is the limit of income tax saving in the NPS service in India?
The National Pension Scheme or NPS is a pension scheme available to government and private employees. It is considered one of the most popular options to create a regular income and corpus for retirement. The money invested in NPS is invested in several investments and securities including the equity market. If you are looking to invest in the equity market, National Pension Scheme is one of the cheapest options to do just that. It must be noted that there is no guaranteed amount you receive as returns with NPS. However, over a period of time, returns on NPS are among the highest in the market. NPS Tax Benefits after Union Budget 2021-22 Investment to the National Pension Scheme now qualifies for Exempt-Exempt-Exempt (EEE) mode of taxation. This means, your NPS contributions, the consequent income generated, and the maturity amount, are all exempted from tax. The latest guidelines specify that up 60% of the maturity is withdrawable and the rest 40% will go to the purchase of an an...