NPS is good tactical investment for senior citizens only if you are investing to save tax u/s 80CCD(1B). Also you are in highest tax bracket right now and think that while withdrawing the NPS maturity amount you would be in lower tax bracket – which often happens after retirement.
The government wants NPS (National Pension Scheme) to be the preferred investment vehicle for pension planning for majority of its citizens. Unfortunately as it happens with most of Government plans, NPS too has flaws which are holding investors back. To encourage investment in NPS, PFRDA (Pension Fund Regulatory and Development Authority) which regulates it have made
NPS – Maturity, Partial Withdrawal & Early Exit Rules [updated 2020] Read More »
Budget 2019 among many things also notified following 3 changes in NPS – which would make it more attractive to investors.
NPS withdrawal becomes Tax free
NPS Tier II now under 80C (only for Central Govt employees)
Contribution increased in NPS to 14% for Government Employees
Budget 2015 had introduced a new section 80CCD (1B) which gives deduction up to Rs 50,000 for investment in NPS (National Pension Scheme) Tier 1 account This new deduction can help you save tax up to Rs 15,600 in case you are in the 30% tax slab. The question is should you take advantage of this
Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)? Read More »
In last two years government has been trying to make NPS the preferred choice for Pension product for Indians. It started with the tax exemption of up to Rs 50,000 for investment in NPS u/s 80CCD(1B) in Budget 2015. This year has been pretty dynamic for NPS as PFRDA (Pension Fund Regulator and Development Authority)
6 Changes in NPS Rules in 2016 & How it Impacts You? Read More »
