You can save additional tax through NPS - Economic Times

Many taxpayers feel that the Rs 1.2 lakh tax-saving investment limit under Section 80C and 80CCF is too low. However, a handful of employers, including Bangalore-based Wipro Technologies, is allowing its staff to claim more tax deductions by investing under the newly introduced Section 80CCD(2).

Under the new section, up to 10% of an employee's basic salary put in the New Pension Scheme is tax deductible. This means a person with an annual basic salary of Rs 5 lakh (nearly Rs 40,000 a month) can get an additional deduction of Rs 50,000 if his employer puts this money on his behalf in the NPS. Assuming that he will have other income (bonus, special allowance, interest, etc), which puts him in the 30% tax bracket, the NPS investment under Section 80CCD(2) will reduce his tax liability by almost Rs 15,000.


You can save additional tax through NPS - Economic Times