What is NPS (National Pension System)?
NPS is India's government-backed retirement savings scheme offering tax benefits under Section 80C and 80CCD(1B) — with both equity and debt allocation options.
Formula
Additional ₹50,000 deduction under Sec 80CCD(1B) above the ₹1.5L limit of 80C
How to Interpret
NPS is the most tax-efficient retirement vehicle in India with an additional ₹50,000 deduction. However, partial lock-in until 60 and mandatory annuity reduce flexibility.
Typical Ranges
Allocate max equity (75% until age 50) for long-term growth. Use for tax optimization.