Insightful Story
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund
I really appreciate your guidelines on earning Rs 1 lakh pension by investing in NPS in your cover story.
I really appreciate your guidelines on earning Rs 1 lakh pension by investing in NPS in your cover story. However, I would like to know whether the deduction of Rs 50,000 would be available in the new tax regime? - Charmi Sharma
Editor Responds : Regrettably, the Rs 50,000 deduction under Section 80CCD is no longer accessible under the new tax structure. But, if your employer contributes to your NPS account, the new tax regime allows for such a deduction. Employees in the private sector are only allowed to deduct a maximum of 10 per cent of their pay, whereas government employees are only permitted to deduct a maximum of 14 per cent of their pay. Salary in this context refers to the basic salary plus the dearness allowance.