NPS Tax Benefits: Maximize Savings Under Old & New Regimes

• Section 80CCD allows tax deductions for contributions to NPS, UPS, and Atal Pension Scheme, promoting retirement savings.
• Old Regime: Individuals can claim up to Rs 1.5 lakh under 80CCD(1) (with 80C/80CCC) plus an additional Rs 50,000 under 80CCD(1B) for NPS.
• New Regime: 80CCD(1) and 80CCD(1B) deductions are not available, but employer's NPS contribution under 80CCD(2) remains deductible.
• Employer's 80CCD(2) limit: 14% for non-govt employees in new regime (vs 10% old), 14% for govt employees in both regimes.
• Benefits are for individuals (residents/NRIs, salaried/self-employed) investing in approved schemes like NPS (age 18-70) and APY (age 18-40).

Why It Matters: NPS contributions offer significant tax benefits under both old and new tax regimes for retirement planning.