The National Pension System (NPS) tax benefits under Sections 80CCD(1) and 80CCD(2) of the Income Tax Act of 1961 are explained in this blog post. It discusses NPS contribution eligibility requirements, deduction caps, and exemption guidelines in addition to offering an example to show the tax advantages.

National Pension System (NPS) is a tax-saving instrument designed for retirement planning. This blog post provides a comprehensive understanding of NPS, including its types, workings, and eligibility criteria.

Under the new NPS rules effective from February 1, subscribers are limited to withdrawing a maximum of 25% from their pension accounts, excluding the employer's contribution