NPS Contribution Limit: Only a few days are left for the presentation of the Union Budget (Budget 2023). Finance Minister Nirmala Sitharaman will present the budget on 1 February.
All industries, businessmen, taxpayers, experts etc. are sending their expectations from the budget to Finance Minister Nirmala Sitharaman through different mediums. Private sector employees also have high hopes from this budget.
Private sector employees are expecting some reduction in tax burden. He wants the National Pension System limit for him to be increased to 14 per cent at par with government employees. Experts believe that this will help private employees in planning their retirement. At present, government employees are eligible for enhanced deduction up to 14% of basic salary in NPS under section 80CCD (2) of the IT Act.
At present, the limit of NPS contribution is 10 percent.
At present, the limit for private sector employees is only 10 percent. Experts believe that due to the lower limit, private sector employees may be less enthusiastic to choose NPS as a retirement investment.
What is NPS
The National Pension System, operated under the National Pension System Trust, is a government-run investment scheme that gives the subscriber the option to decide the preferred allocation across various asset classes. NPS offers two types of accounts Tier-1 and Tier-2.
The budget session is starting from January 31.
Significantly, this time the budget session of the Parliament will start from January 31, 2023, on which day President Draupadi Murmu will address the joint sitting of Lok Sabha and Rajya Sabha. The session will have 27 sittings and will continue till April 6. The first phase of the session will be from January 31 to February 14. After a break of about a month, the second phase of the budget session will start from March 12 and will continue till April 6.
