Claim Extra ₹50,000 Tax Deduction with NPS Before March 31!

Why This Is Trending:
Many taxpayers max out their ₹1.5L 80C limit but forget that they can get an extra ₹50,000 deduction by investing in NPS — under Section 80CCD(1B).

With March 31 approaching, here’s how you can make a last-minute NPS investment and save big on taxes.

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1. What Is 80CCD(1B)?

• It’s a separate section under the Income Tax Act
• Allows deduction up to ₹50,000 for contributions made to National Pension System (NPS)
• This is over and above the ₹1.5L 80C limit

Total possible deduction = ₹2,00,000 (₹1.5L under 80C + ₹50K under 80CCD(1B))

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2. Who Can Claim It?

• Available to salaried & self-employed individuals
• You don’t need to contribute via employer — personal NPS deposits count
• No age or income limit to claim this benefit

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3. How to Invest in NPS Before March 31

• Open account via https://enps.nsdl.com or your bank
• Choose Tier I account (eligible for tax deduction)
• Deposit up to ₹50,000 (or more) using net banking/UPI/card
• Download payment receipt for ITR proof

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4. Where to Claim in ITR

• In Chapter VI-A > Section 80CCD(1B)
• Use ITR-1 or ITR-2 depending on your profile

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Pro Tip:
Even if you’ve already invested ₹1.5L in LIC/ELSS/PPF, this extra ₹50K can save you ₹15,600 more in tax (for those in 30% bracket)