NPS(NationalPensionSystem)
Definition
A government-sponsored pension scheme regulated by PFRDA that allows systematic savings for retirement. NPS offers tax benefits under Section 80CCD(1) within Section 80C limit, plus an additional Rs 50,000 deduction under Section 80CCD(1B). It has a lock-in until age 60 with limited partial withdrawal options.
Example
An investor contributing Rs 50,000 annually to NPS under Section 80CCD(1B) gets an additional tax deduction over and above the Rs 1.5 lakh limit of Section 80C.
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