How to claim amount invested in NPS for tax exemption

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How to claim amount invested in NPS for tax exemption

I’ve registered an NPS account online today and invested Rs.6000/- in Tier 1 account and Rs.2000/- in Tier 2 account. I’ve saved the payment acknowledgment. Income tax proof submission in my firm is already ended. I know that i can claim the above amount for tax exemption while filing the returns. But, how should i submit the proof? If i submit the payment acknowledgment, will it suffice? Asking because, payment acknowledgement is for Rs.8000/-, which is a sum of investments done in Tier 1 & Tier 2 accounts. But, Only Tier 1 account qualify for tax exemption. I don’t have any recepit specific to Tier 1 account. I also don’t have account statement as of now.

Profile photo of Bharath Gurram Asked By: Bharath Gurram 1 replies 0 helpful answers Last Updated: 6 months ago
  • Profile photo of Bharath GurramBharath Gurram
    Participant

    I’ve registered an NPS account online today and invested Rs.6000/- in Tier 1 account and Rs.2000/- in Tier 2 account. I’ve saved the payment acknowledgment. Income tax proof submission in my firm is already ended. I know that i can claim the above amount for tax exemption while filing the returns. But, how should i submit the proof? If i submit the payment acknowledgment, will it suffice? Asking because, payment acknowledgement is for Rs.8000/-, which is a sum of investments done in Tier 1 & Tier 2 accounts. But, Only Tier 1 account qualify for tax exemption. I don’t have any recepit specific to Tier 1 account. I also don’t have account statement as of now.

  • Profile photo of Shweta RabadeShweta Rabade
    Moderator

    As you have mentioned that the investment proof submission window allowed by your employer is already over, now you will not be able to claim this deduction through your employer. 

    Further you have rightly said that only Tier 1 account contributions qualifies for tax deductions and Tier 2 account can’t get any tax benefit. But anyways you don’t need to submit any proof of your tax deduction with your return form. The documentary proof will be needed only in case if there is any query from the tax department in this regard. You can simply file your tax return claiming the tax deduction on your contribution to Tier-1 account.

     You have mentioned that you have recently opened this account and deposited the amount, I am sure that you will soon receive the detailed account statement showing your contribution to both Tier 1 and Tier 2 accounts separately which you can submit in case of any future inquiry from the tax department. 

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