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Aditya Birla Sun Life Pension Fund Management Limited

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Aditya Birla Sun Life Pension Fund Management Limited

Tax Benefits Under NPS

Contribution to NPS are *Tax deductible under 80CCD (1), Section 80CCD (1B) and Section 80CCD (2) of the Indian Income Tax Act. 1961

*Tax benefit is subject to applicable tax laws.

NPS Tax Benefits

Tax Benefits for Self-Employed Individuals(Available only under Old Tax Regime)
Tax Benefits for Salaried
Additional Tax Benefit for Salaried Individuals under Corporate NPS
Within 80C limits
Check iconUnder section 80CCD (1)

The self-employed NPS subscribers can claim a tax deduction up to 20% of their gross income or ₹1,50,000 whichever is less.

Check iconUnder Section 80CCD (1B)

NPS subscriber can claim tax deduction on an additional self-contribution up to ₹50,000/-

NPS subscribers can withdraw anytime from their Tier II accounts

Tax treatment for NPS at the time of exit

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For Premature Exit from NPS

NPS Subscriber can withdraw lump sum 20% of the entire corpus build. The withdrawal amount is tax exempted.

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For Lumpsum Withdrawal at Retirement

Once the NPS subscriber attains the designated retirement age or post 60 years (which ever is early). Subscriber is eligible to withdraw 60% of the corpus in lump sum. The amount withdrawn is exempted from tax.

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For Annuity Purchase

The amount apportioned for purchasing annuity plan from NPS is GST exempt. Income from annuity in the form of pension is part of the income and to be accounted for taxes under IT rules.

Other Benefits of NPS

Affordability

NPS is a low-cost investment option. Over a long term horizon of 20 to 40 years, small savings in operational costs result in a huge difference in the accumulated corpus and the ultimate pension.

Portability

NPS provides seamless portability across jobs and across locations as the subscriber can shift to the new job/location, without leaving behind the corpus build, as happens in many pension schemes in India.

Online access:

It is easy to register for NPS and manage the same online. Subscriber(s) can also set SIP for contributions through Aditya Birla Sun Life Pension Fund Management limited website in simple steps.

Retirement & Tax planning with NPS

NPS is Retirement Planning Investment product with various tax benefits. Contribution under NPS enjoys tax benefit under section 80CCD (1), under section 80CCD (1B) and Section 80 CCD (2) on Indian Income Tax 1961.