Save tax in the new regime with the corporate NPS

In the Union Budget for FY25, the finance minister revealed that two-thirds of taxpayers have switched to the new tax regime. Now, the new tax regime has few deductions and exemptions. But one prominent deduction available in the new regime is the employer’s contribution to the NPS. For the new regime only, its limit has been raised from 10% to 14% of the basic salary now. But to avail it, you must understand how the corporate NPS works.

This video is divided into certain sections that explore the corporate NPS in detail. We have talked about contributions, investment options, tax benefits, withdrawals, exit and transfers in this video. You can either watch the video fully or click on the timestamps below to jump directly to a relevant section.

Related videos:

Government NPS:

All-Citizen model of the NPS:

NPS Tier II vs mutual funds:

NPS changes:

Chapters
00:00 INTRODUCTION
01:45 What is the corporate NPS?
03:17 Contributions
04:04 Investment options
06:48 Tax benefits
08:19 Withdrawals, exit & transfers
08:19 ET Money’s view

#ETMoney

👉 Subscribe to ET Money Hindi

👉 5 Minute Finance channel

👉 Follow us on:

[sujitnayak]

Very helpful and concise presentation. Cleared all my doubts about corporate NPS. Thanks😊

[PramitKumarMadala]

But orgs are telling that they have not received communication from ITD and are capping employer contributions at just 10%

[Dude_Virus]

Could you please give more explanation on the 3 different types of contributions. In what scenarios will there be equal contribution by employer and employee ?

[anandvaidya]

Excellent, Simple and useful video. Thank you Rajat.

[raja]

Sir

Actually ET presentations are good.
But always talk postive on the MF Schemes ( types) or Topics.

Better to compare the availability of the tools and prefer .
Hence the data of last 45 years of market is live.

Hope ELSS is comparatively good.

Corpus and Annuity will return in ELSS

[abhiramachandra]

My firm allows me to modify the weightage foe Basic pay of salary within the total CTC. Do you think its a good option to increase this percentage weightage for Basic to make most for NPS ?
Iam in highest tax slab.

[RanjeetMD]

One very basic question : What happens to the corpus when employee turns 60 yrs old and market crashes just like March2020?

[rinavall]

Can a company provide both EPF and Corporate NPS benefits?

If my company deducts the full 10% of basic salary for EPF can we still opt in for corporate NPS.

7.5L limit is only for corporate NPS or for other deductions too under the old tax regime

Also after exhausting the 80C and 80CCD 50K limit, does corporate NPS offer further decrease in taxable income?

[THEKING-sqjd]

Cannot invest in such product without guaranteed fix pension. Invest in debt of flexi cap which can give much more return and assured prediction

[VishalGr-tg]

Hi do you have any courses, i tried many websites I didn't find your name anywhere

[chakrabortyraj]

It's now an useless product, as central govt has introduced UPS.
Eg. 10% NPS investment is tax free in old regime.
But in new regime it's 14%, that's before replacing NPS with UPS.
Aab bhai, desh k IAS ko UPS/OPS mil jaye, aur wo NPS ka koi labh dene dega, aam aadmi ko????

If you still think yes.... I admire your innocence!
NPS needed improvements, which were on track but will now stop, for reason stated above...

[PranavKovale]

Man, you are explaining in the most boring way possible! I slept watching it.