How Much Can I Contribute To NPS Account in order to get the Income Tax benefit ? – Any Individual who is holding the NPS account may contribute as per the limitation provided by PFRDA.
The Limitation of NPS account for contribution amount are :
- Any New subscriber can make his / her first contribution at the time of applying for registration at any POP-SP along NCIS (NPS Contribution Instruction Slip) form with amounting as per the condition provided :
Minimum amount at the time of Account opening – Rs 500 (Optional for Corporate subscriber)
Minimum amount per contribution – Rs 500
Minimum contribution per year – Rs 6,000
Minimum number of contributions in a year – one
Beside this subscriber may also contribute the amount over and above the mandated limit of a minimum of one contribution, it is left on subscriber to decide the frequency of contribution across the year as per their convenience. It is to remember there is no maximum limit for contribution in NPS account for investment but there is limitation vested in order to get the Income Tax Benefit.
For Tier II, minimum contribution requirements
1.Minimum contribution at the time of account opening – Rs.1000
2.Minimum amount per contribution – Rs.250
3.Minimum number of contributions in a year – one
4.Maintain minimum balance of Rs.2000 at the end of each financial year.