n NISM Certifications
X NISM Series X
Medium

What is the maximum deduction available to a self-employed person for investments made in the National Pension Scheme (NPS)?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    No limit

  2. Rs. 2,00,000

    Correct answer

  3. C

    Rs. 1,50,000

  4. D

    Rs. 50,000

Why this is the answer

The total deduction under Section 80C, 80CCC, and 80CCD(1) is limited to Rs. 1,50,000; however, contributions made by the employer to an employee’s NPS account and an additional deduction of Rs. 50,000 for self or employee contributions enable the total deduction to go up to Rs. 2,00,000.

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