I wondered when found that some of my close friends/colleagues didn’t yet opt for NPS (National Pension Scheme) through Employer – 80 CCD2. This forced me to write this post even when I am not a Tax expert. Based on my experiences it’s the highly recommended option if you fall under 20 or 30% Tax slab. Here is why:

– If you take home this amount, practically it’s very difficult to consistently generate 30% plus returns on this amount. However opting NPS option, immediately you earn 30% return (tax exemption) as well as secure investment for your retirement in the equity linked scheme for higher returns.

– Employer NPS contribution is also carried forward to new Tax regime. So even if you decide to go with new Tax Regime later, you still have the benefit of 30% plus returns 😀

Disclaimer: I am neither a Tax professional nor a Finance expert but an IT professional. Motive is just to share my experience with friends to benefit them too in their personal finance journey. So you may please want to consult your tax advisor before taking any further actions.