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How To Claim Tax Deduction For Investment Towards NPS?


NPS investment can be made both by the salaried as well as self-employed taxpayers and over and above the 80C benefit of Rs. 1.5 lakh deduction for different eligible investments and expenses, the investment option allows deduction of up to Rs. 50,000 in a financial year under Section 80CCD (1B) of the Income Tax Act.

How To Claim Tax Deduction For Investment Towards NPS?

And to make the claim, you need to furnish the proof of investment in NPS Tier I account to your employer within the timeline set by your employer if it is on your own i.e. outside of salary. Copies of PRAN card (Permanent Retirement Account Number) as well as the NPS account transaction statement has to be submitted with the employer as per the Central Recordkeeping Agency for NPS.

Also, the NPS subscriber can log into the NPS a/c and download the receipt of voluntary contribution towards the NPS Tier I account.

Downloading receipt of voluntary contribution made under NPS Tier I account that suffices as proof of NPS investment:

After logging into the NPS account, the subscriber needs to click the 'Views' option under the main menu and thereafter go to the link saying "Statement of Voluntary Contribution under NPS".

And herein an investor is allowed to download contribution statement for different financial years.

In case the investment in NPS is via the corporate or employee model, there is no need to submit the proof of actual investment in the instrument as the same is deposited and recovered by the company in your PRAN account.

Story first published: Saturday, January 12, 2019, 11:58 [IST]
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