The government has made an attempt for the National Pension Scheme to make it one of the most favored investments for the retirement saving plans. For making the scheme more reinforce and captivating for the investor's government has come up with new benefits with the new Budget 2017 for NPS.  

Here are the new benefits and changes made:

1. According to the existing provision of section 10 (12A) of the Income Tax Act, 1961, any payment to a subscriber on the closure of his NPS account or with him/ her opting out at maturity, is exempt up to 40% of the total corpus at the time of withdrawal.

As per the new changes made in the Budget, a further relief is proposed to benefit the subscribers of NPS and it has been proposed to insert a new clause i.e. 12B in the section 10 of IT Act, 1961 which provides an exemption on partial withdrawal but the same partial withdrawal cannot exceed 25% of the total contribution made by a person. This change will come into effect on all the partial withdrawals as made on or after April 1, 2017. 

2. Contribution up to 20% of the gross income of all the Individuals excluding the salaried individual) will be available for deduction from his or her taxable income under Section 80CCD(1) of the Income Tax Act, 1961, the said limit was fixed up to 10% earlier. 
This particular change is brought in to bring in parity between an individual who is an employee and an individual who is self-employed because the existing provisions say that an employee or other individual would be allowed a deduction for amount they invest or deposit in their NPS account. And this deduction cannot exceed 10% of salary in case of a person who is an employee or 10% of gross total income for a person who is a self-employed and falls into the category of individuals other than individuals working with someone as an employee. 

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