Business Standard

Combine retirement planning with tax saving via NPS, say experts

With premature withdrawal being difficult, opt for it if you won't need the money till retirement

Photo: Shutterstock

Photo: Shutterstock

Bindisha Sarang
The March 31 deadline for making tax-saving investments for 2022-23 is approaching. One instrument that investors may consider -- both for retirement planning and tax saving -- is the National Pension System (NPS).

NPS offers two accounts. The mandatory tier I account comes with a lock-in period but offers tax benefits. The voluntary tier II account offers complete liquidity but doesn’t come with tax benefits.

Tax benefits on individual contribution

Any individual (resident or non-resident) who has paid any amount in his NPS account is eligible to claim a deduction under Section 80CCD (1) of up to Rs 1.5 lakh.

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First Published: Feb 22 2023 | 7:35 PM IST

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