What are the tax benefits of saving for retirement?

In India, saving for retirement comes with tax benefits under Section 80C of the Income Tax Act. Contributions made towards retirementoriented schemes such as the National Pension System (NPS), Public Provident Fund (PPF), and Employee Provident Fund (EPF) are eligible for a tax deduction of up to Rs. 1.5 lakh per annum. Additionally, the interest earned and the amount received on maturity is also taxfree.

Furthermore, contributions to the Atal Pension Yojana (APY) are eligible for a tax deduction under Section 80CCD of up to Rs. 50,000 per annum.

Investing in annuity plans offered by insurance companies is another option for retirement planning that comes with tax benefits. Under Section 80CCC, individuals can claim a deduction of up to Rs. 1.5 lakh per annum on the amount paid as a premium for annuity plans.

Overall, saving for retirement not only helps in securing one's financial future but also helps in reducing one's tax liability.