NPS Contribution Limit Increased#
Section 80CCD(1B) Update#
Budget 2025 increased the additional NPS deduction from ₹50,000 to ₹50,000 (already increased in previous budgets).
Deduction Breakdown#
| Component | Limit | Section |
|---|---|---|
| Employee (own) | ₹1.5 lakh | 80C |
| Additional NPS | ₹50,000 | 80CCD(1B) |
| Employer | 14% of salary | 80CCD(2) |
Who Can Claim?#
- Any individual (salaried or self-employed)
- Must have Tier I NPS account
- Contribution made during the financial year
Benefits#
- Additional deduction over and above 80C
- Tax-free accumulation
- Pension income partially taxable
- 60% tax-free lump sum at maturity
How to Claim#
- Show contribution in ITR
- Form 26 AS will show TDS on NPS
- PRAN statement as proof
Contribution Methods#
- Monthly contribution
- One-time lumpsum
- Auto-debit from salary