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, 60% lump sum withdrawal is tax-free; 40% must be used for annuity purchase.
Related Terms
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