NPS fund provides exemption of 1 Lakh in Section 80 CCD(2).

POSTED BY vishal dogra ON May 30, 2013 11:03 am COMMENTS (9)


Please read the article, here NPS fund provides exemption of 1 Lakh in Section 80 CCD(2). apart from 80 C. So please Guide me on this.


Vishal dogra

9 replies on this article “NPS fund provides exemption of 1 Lakh in Section 80 CCD(2).”

  1. Dear Vishal, please read the past discussions, for more clarity.



  2. bemoneyaware says:

    NPS instils disciplined retirement planning by putting restriction on withdrawal during the accumulation phase and secondly investing in an annuity plan, it leads to judicious withdrawal in the post-retirement phase. Various features of National Pension Scheme are as follows :

    Open to all Indian citizens including NRI’s aged between 18-60 yrs.
    Offers/portability – account can be operated from anywhere in the country.
    Pension contribution invested by professional Fund Managers PFM’s.
    Asset allocation flexibility
    Lowest Fund Management charges
    Change fund. No Entry and Exit Loads with Transparent Fee Based System.
    Regulatory efficiency.
    After subscribers retire at the age of 60, they may choose to purchase an annuity for an amount 40% or greater than it and withdraw the remaining pension wealth in lump sum.
    Withdrawable facility under Tier-II Account.
    Tax : Contribution to NPS is tax deductible subject to the Rs. 1 lakh limit. Further, under Section 80CCE, employer’s contribution to the extent of 10% of basic plus DA is tax deductible for the employee over and above the Rs. 1 lakh 80C limit, and also for the employer as it can be shown as a business expense.

    Our article Understanding National Pension Scheme – NPS explains it in detail.
    Saving For Retirement : Pension Plans,NPS,EPF,PPF compares the various options?
    Does NPS suit you then?

  3. Dear Pattu, thanks for pointing out my mistake. Yes indeed you are true. So I stands corrected here.



  4. Dear Vishal, to be benefited from 80CCD, your employer should contribute in your NPS & at the same time, this should be part of your employer’s tax planning. Then only it’s beneficial.



    1. Ashal,

      Whether employer plans to include contribution to their tax planning or not, the employee can get the benefit.

      Once a private player chooses to go for NPS it is very likely that they have their eye on the tax angle anyway

      1. vishal dogra says:


        Here how much I need to invest, at present I have 10 K monthly investment :

        1. 3 K in ICICi Discovery Fund – SIP
        2. 2 K is DSPBR Top 100 Equity – SIP
        3. 2 K in I maximize of Religare
        4. 3.192 K of Tata AIA Life Maha Gold

        Please Guide me !

        Vishal Dogra

        1. Vishal,

          Invest for what? When do you need the money?

          1. vishal dogra says:


            At present I dont have any plan for which I am saving money.
            As I can save thats why I am saving and the ultimate Target is Profit and nothing else.
            For SIP , my vision is for 5 yrs and rest 2 is for 15 yrs.
            Apart from that I have 25 K yearly saving in ICICI Life Stage Pension Advantage from last 4 yrs.For This I have vision of more then 15 yrs.

            Now as per this please guide me !

            Vishal Dogra

  5. Is your employer contributing to your NPS?

    If yes sec 80CCD(2) is applicable.
    if not, no

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