Tax: If you’re considering investing to protect your hard-earned funds, then this information is for you. In fact, the existing financial year is nearing its conclusion, and the new tax year will begin on 1 April 2025. In this scenario, the majority of taxpayers have their final opportunity to reduce their taxes.

Tax savings via NPS

Particularly now, there are just two days remaining for tax savings via NPS. To save on taxes, investments must be made in advance, and the associated documents must be submitted to the Income Tax Department as evidence. You may invest in any plan until 31st March 2024 and claim a deduction by selecting the old tax regime when submitting your ITR. To achieve this, there are numerous government savings programs, and one notable program among them is the NPS.

National Pension System (NPS)

The National Pension System (NPS) is a state-sponsored retirement savings program. Investing in this program offers the advantage of an extra tax deduction of up to Rs 50,000 as per Section 80CCD (1B) of the Income Tax Act. In other words, according to Section 80C, you can receive a full exemption of up to Rs 2 lakh in income tax. The government is additionally encouraging NPS.

Begin investing with Rs 1000

You can begin investing with Rs 1000 each month. Any Indian national aged 18 to 65 can create an account in this program. An NPS account may be established at any bank. You can obtain instant income tax exemption by putting in a single investment of Rs 50,000 in NPS.

Also receive a favorable return

NPS is one such initiative managed by the government that can provide a substantial amount in crores of rupees along with a pension over the long term. With this, you also receive a favorable return on your monthly contributions. Any employee from the government or private sector can begin to invest in it.