NPS (National Pension System)
Definition
Retirement savings scheme with tax benefits and investment flexibility. Contributions eligible under Section 80C and additional deduction under 80CCD(1B). Available only under the Old Tax Regime.
In Context
NPS offers dual tax benefits: up to ₹1.5L under 80C and additional ₹50K under 80CCD(1B). At retirement, non-government subscribers can take up to 80% as a lump sum (PFRDA, December 2025), with at least 20% used to buy an annuity; only 60% of the corpus is tax-free.
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⚠️ Disclaimer: This glossary is for educational purposes. Simplify Money provides analytical insights and guidance. We have applied for SEBI RIA registration.
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