Outlook Money
They get pensions after retirement, and after death, their spouses receive the benefit. They can also withdraw up to 40 per cent of the NPS fund.
Pensioners are eligible for the Central Government Health Scheme (CGHS) facilities.
The exemption limit for 60 years and above is Rs. 3 lakh, and for 80 years and above is Rs. 5 lakh.
Payments under civil pension rules, employer’s pension schemes, and funds established under Clause 23AAB are tax-exempt.
The gratuity amount is also exempt from tax.
Employees receive tax exemption on the cash equivalent of earned leave at retirement.
Money received from a provident fund is tax-exempt.
Those aged 60 and above can get a maximum deduction of Rs. 50,000 under section 80D for health insurance premiums.
Compiled By Avijit Gupta