Corporate NPS: You can save a lot of tax from contribution in corporate NPS, know how – corporate nps know how to maximize your tax savings with the help of corporate nps

In the Union Budget 2025, the government made several big announcements to increase the new regimen attack of income tax. Chartered Accountants say that this has increased the interest of people in corporate NPS. In the new regim, taxpayers get a few deductions. These include deduction on corporate NPS. Now under Section 80 CCD (2) of Income Tax, deductions are available in both new and old reizards at the employee’s NPS account in the NPS account of the employee. However, there is a big difference between the new reizard and the old regimen in this case. Let’s know about this in detail.

In the new Regim, the Employee’s NPS account provides deduction on the contribution up to 14 per cent (Basic Pay and Dearness Alloun) of the staff. Its limit in the old regimen is 10 percent. However, in case of government employees, deductions are available at up to 14 per cent already. In the new regimen, the decision to deduction on the contribution of the staff up to 14 per cent was taken in the Union Budget 2024. This means that taxpayers using the new regimen can now take advantage of this deduction found in NPS.

In the new regimen, if the staff has a NPS account of 14 per cent (10 per cent in Old Regim), it will be entitled to deduction under Section 80 CCD (1). For this, a limit of Rs 1.5 lakh already fixed under section 80C will be implemented. Under section CCD (1B) in Old Reijim, an additional Rs 50,000 deduction is available on Contribution in NPS. This additional deduction is not available to taxpayers in the new regimen. In the new Regim, only 14 per cent of the employer’s contribution (Basic Plus DA) is deducted in the Employee’s NPS account.

In the new regimen, the government may have increased deduction on the control of the employer in NPS to 14 per cent, but does not show interest in this due to lack of information information. The reality is that if the employees show interest in this deduction of NPS, then they will be quite taxed. According to the calculation of the taxman, if the employee uses corporate NPS, then the new regimen will have an annual income tax-free of up to Rs 13.5 lakh.

Resident Indians, NRI and Overseas Citizens of India (OCI) can take advantage of corporate NPS. For this, they have to prepare their employees to contribute to their NPS account. If you already invest in NPS, you can give your employer a permanent retirement account number (Pran). You can prepare it to contribute to NPS account. A person working in the private sector can contribute to both NPS and EPF.