Saves Taxes – 30% Return in 30% Income Tax Bracket
The amount invested in NPS ( National Pension Plan ), upto a limit of Rs 50,000, saves taxes under section 80CCD. The taxes saved will depend on tax bracket of the individual. Under OLD Tax Regime tax saved is 5% of 50,000 = Rs 2,500 for lowest tax bracket and is 30% of 50,000 = Rs 15,000 for 30% tax bracket. This immediate and significant tax saving is good enough reason to invest into NPS ( National Pension Scheme ). Return on the investment and accumulating a retirement corpus are additional benefits.