NPS Tax Benefits
| Section | Limit | Note |
|---|---|---|
| 80CCD(1) | Up to 10% of salary | Within 80C limit of ₹1.5L |
| 80CCD(1B) | ₹50,000 | Additional, over 80C |
| 80CCD(2) | 10-14% of salary | Employer contribution |
NPS Asset Classes
- Class E (Equity): Up to 75% allocation, highest risk & return
- Class C (Corporate Bonds): Moderate risk & return
- Class G (Government Securities): Safest, lowest returns
- Class A (Alternate Assets): REITs, InvITs, etc.
Withdrawal Rules
- At 60: Minimum 40% must buy annuity, 60% tax-free lumpsum
- Before 60: Minimum 80% must buy annuity
- For corpus below ₹5 lakh, 100% withdrawal allowed
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Pro Tip
Maximize 80CCD(1B) for additional ₹50,000 deduction. If you're in 30% bracket, you save ₹15,600 in taxes!