Union Budget 2022-23: Tax Deduction limit hiked to 14% from 10% on NPS accounts

Several tax-related announcements were made by Finance Minister Nirmala Sitharaman as she presented the Union Budget 2022 on Tuesday. While the government has not made any changes in the slabs of income tax, it proposed to increase the tax deduction limit on NPS. FM in her budget speech announced that both state and central government employees' limit of tax deduction will be increased from 10% to 14% on NPS (National Pension System) accounts.

Peaceful Post-Retirement Life
Tax Free Regular Income
Wealth Generation to beat Inflation

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000

Get the best returns & make the most of your Golden years

Your Name

+91

Your Mobile

View Plans

By clicking on "View Plans" you agree to our Privacy Policy and Terms of use Tax benefit is subject to changes in tax laws

Get Updates on WhatsApp

We are rated

58.9 million

Registered Consumers

51

Insurance
Partners

26.4 million

Policies
Sold

This decision is made to support the social security benefits of state government to offer equal treatment at parity with the central government employees. The tax benefit is limited to 10% for private-sector employees. Announcing tax-related modifications, Sitharaman added, “to give an opportunity to correct an error, now taxpayers can file an updated return within two years from the relevant taxation year”.

The highlights of the Union budget 2022 are:

Tax deduction increased from 10% to 14% on NPS accounts
Presently, only the central govt. employees are entitled to claim a tax-saving benefit of 14 percent to the NPS account of an employee for the employer’s contribution
The corporate surcharge will be decreased from 12% to 7%

Union Budget 2022 has proposed to bring uniformity in the tax deduction limit on contribution to NPS, between central and state government employees.

Secure Your Retirement Today

Start Investing ₹6,000/month

Get Pension ₹60,000/month+

Including Life Cover

View Plan