How National Pension Scheme (NPS) Reduces your Income Tax | Section 80CCD Explained | FinCalC TV HD

How National Pension Scheme (NPS) Reduces your Income Tax | Section 80CCD Explained | FinCalC TV DOWNLOAD our FREE ANDROID APP "FinCalC": https://play.google.com/store/apps/details?id=com.rrr.apps.financialcalculator Blog Post: Section 80CCD(1B) https://fincalc-blog.blogspot.com/2018/12/save-income-tax-using-national-pension-scheme-fincalc.html This video by FinCalC TV explains How National Pension Scheme (NPS) can be used to reduce Income Tax under Section 80CCD(1B). SECTION 80CCD(1B) Any individual can invest in National Pension Scheme (NPS), that falls under Section 80CCD(1B) which allows a maximum deduction of Rs.50,000 in the FY 2018-19. This deduction is apart from Rs.1,50,000 that can be claimed as deduction under Section 80C. By investing Rs.50,000 in NPS you save Rs.2,600 under 5% Tax Slab Rs.10,400 under 20% Tax Slab Rs.15,600 under 30% Tax Slab This way, you can invest up to Rs.2,00,000 under Section 80C and Section 80CCD(1B) and save up to Rs.62,400 as Income Tax if you fall under 30% Tax Slab. Changes made in NPS There are some crucial changes made in NPS by Government of India to make it more attractive. 60% withdrawal completely exempted from Tax Previously, after reaching the age of 60 years, the NPS subscribers were allowed to withdraw maximum 60% of the corpus. Out of which 20% was taxable. After recent changes made, the entire 60% withdrawal is non-taxable. Thus making it similar to PPF where principal, interest and maturity amount are all exempted from Income Tax (EEE). Remaining 40% of the corpus will be used to buy Annuity Plan that will serve for regular pension payouts. Tier 2 investments are exempted under Section 80C Another change that has been made and is applicable for Government Employees is that the investments made in Tier 2 of NPS can be claimed as deduction under Section 80C, provided the Investments made are locked in for at least 3 years. This change is expected to be extended to private employees as well. This change makes NPS investments similar to investments in ELSS, where both will enjoy deduction under Section 80C (Max Rs.1,50,000) The examples used are for Illustration purpose only. Comment in comments section if you have any queries. ============================= SUBSCRIBE to our "FinCalC TV" YouTube Channel for more updates: https://www.youtube.com/channel/UCymd4lQ9ZJpvd7Pjz0g7vJQ?sub_confirmation=1 New Income Tax Calculation for FY 2018-19: https://youtu.be/RZn3cH34QN0 FOLLOW FinCalC Blog: https://fincalc-blog.blogspot.com Facebook : https://facebook.com/rrreclaim1 Twitter : https://twitter.com/rrreclaim