Tax payers can save additional Rs.15000

You want to save another Rs 15,000 before the fianancial year ends? The New Pension Scheme helps you do that. By investing Rs.50,000 under the New Pension Scheme, you will be entitled to save under Section 80c, and further Rs.15,000 under the Section 80CCD. This additional investment is above the 80C investment limit. By investing Rs.50,000, those in the range of 30% tax bracket can save Rs 15,000, 20% tax Rs.10,000, 10% tax bracket Rs.5,000. These investors can get the benefits under the scheme after they reach the age of 60, as per the provisions of the Pension Fund Regulatory and Development Authority. The authority is organising the New Pension Fund. The provision has been designed entitling the investors to enjoy the benefit after they retire from service when they are 60, according to wealth advisory agency, Plan Ahead. Plan Ahead founder Vishal Dhawan says the pension plan allows further savings. In NPS, investors have the option to put money in government bonds, corporate debt and equities. The investment in equities can't exceed 50 per cent. Unlike PPF, returns in NPS are not guaranteed and are market-linked.