Under section 80C of Income Tax, you save tax on your income of Rs 1.50 lakh but do you know how you can save Rs 50,000 and how you can save it. Under 80C, public provident fund, equity-linked savings scheme (ELSS), life insurance policy, principal of home loan etc. are included. You can save up to Rs 50,000 under section 80 CCD (1B) after the limit of Section 80C of 1.50 lakh rupees. This means that the 31.2 percent most taxed tax brackets come in, He can save tax of Rs 15,600 directly.
National Pension System
Section 80 CCD (1B) increases your exemption limit from 1.50 lakh to 2 lakh rupees. Tax exemption on National Pension System under Section 80CCD (1B) is available. If you want, you can put a full amount of Rs 2 lakh for a claim of Rs 2 lakh. Or just take Rs 50,000 in NPS and you can take advantage of the rebate. Even if you have taken full advantage of tax benefit of Rs 1.50 lakh, then invest Rs 50,000 and save in NPS.
What is this plan
National Pension System has become a better option for future planning. This scheme was launched by the Government of India on 1 January 2004. Any employee working in the private sector along with the government, whose age is between 18 and 60 years, may be included in the scheme of his own volition.
How much do you need to invest
Good thing is that this scheme can start with an investment of Rs. 500 a month. At the same time, the maximum amount of investment can be anything. There are a lot of people who start their job at an early age, then come to the position that they can make some monthly investments. In the plan, you have to invest