In less than 24 hours, Finance Minister Nirmala Sitharaman will be presenting the Union Budget 2021. While the Budget announcement will be keenly watched by all and sundry, it is the aspect of personal tax that has the maximum attraction for the salaried class.
For the salaried class, any savings over and above the one prescribed section 80C of Income Tax is an added benefit. If you are keen on saving some extra bucks rather than the deduction of Rs 1.5 lakh under section 80C, the National Pension System (NPS) is a great instrument.
An additional deduction for investment up to Rs 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of Rs 1.5 lakh available under section 80C of Income Tax Act 1961.
Further tax benefits under the corporate sector:
For corporate subscriber, the additional Tax Benefit is available to Subscribers under Corporate Sector, u/s 80CCD (2) of Income Tax…