Though I have talked about the difference between Tier 1 and Tier II NPS accounts in many of my earlier posts, I still receive a number of queries from investors asking about the difference between the two. In fact, I had a query where the investor invested in Tier 2 NPS to avail tax benefit (figured out later). Therefore, I think it will be useful to dedicate a post to the … [Read more...] about What are Tier 1 and Tier 2 NPS accounts? What is the difference?
Sukanya Samriddhi Scheme or Sukanya Samriddhi Yojana (SSY) was notified in December 2014. The scheme is part of the Beti Bachao, Beti Padhao Scheme The scheme offers attractive guaranteed interest rates. The Government sweetened the deal by making Sukanya Samriddhi Account part of Exempt-Exempt-Exempt (EEE) tax regime. The motive of the scheme is to encourage the savings in … [Read more...] about Sukanya Samriddhi Yojana Account Rules: Comprehensive Information Guide
In this post, I will discuss an aspect of NPS about which I have received quite a few queries. What to do if you have two NPS accounts? Based on the number of queries that I receive on the issue, having two NPS accounts is not very uncommon. They got one through their employer. Subsequently, when they read about exclusive tax benefit of Rs 50,000 for investment in NPS Tier-I … [Read more...] about What to do if you have two NPS accounts? How to close the second NPS account?
In this post, let’s discuss the new developments in National Pension Scheme (NPS). Introduction of Karvy as CRA A CRA does not back-office work and performs administrative and customer service operations. In addition, it interfaces with different entities in NPS system. Earlier, NSDL was the only Central Record-Keeping Agency (CRA). In January 2017, PFRDA allowed Karvy as … [Read more...] about NPS Updates: A new CRA and Shift to eNPS is now allowed
The biggest financial risk during retirement is that you may outlive your retirement corpus. You may have planned really well and planned for the corpus to last till the age of 90 but you are fit for another 10 years by the time you turn 90. I have not even considered many unknowns and unplanned expenses in life. What do you do then? How will you provide for your basic … [Read more...] about When to purchase an Annuity plan?
Affordable housing is one of the major focus areas of the present Government. Pradhan Mantri Awas Yojana (PMAY) was launched in 2015 to promote affordable housing. Under PMAY, the Government launched Credit Linked Subsidy scheme (CLSS) to provide relief to such buyers who take loan to purchase or construct a house . Under the scheme, the Government, through its nodal agencies … [Read more...] about How Interest Subsidy is calculated under Credit Linked Subsidy Scheme in PMAY?
In Union Budget 2016, the Finance Minister proposed a one-time tax exemption to EPF subscribers to switch to NPS. There will be no tax levied for making such a switch from EPF to NPS. Do note the transfer from EPF to NPS is only approved on paper. Many modalities are still being worked out. You can expect opposition from various quarters. However, since the switch is … [Read more...] about EPF vs NPS: Should you switch from EPF to NPS?
The Government of India is coming out with Further Fund Offer (FFO) of CPSE ETF. FFO opens on January 18, 2017 and closes on January 20, 2017. The Government plans to raise Rs 4,500 crores with an option to retain over-subscription up to Rs 1,500 crores. Should you invest in follow on offer of CPSE ETF? Let’s discuss the various aspects. What are Exchange Traded Funds … [Read more...] about Should you invest in CPSE ETF follow on offer?
Life is fickle. Anything can happen. You purchase insurance to protect yourself financially against such unfortunate events. A good insurance portfolio ensures that you (or your finances) are covered against all eventualities. Life insurance proceeds will ensure that your family achieves the financial goals in your absence. A health insurance plan will ensure quality health … [Read more...] about Do you need a Personal Accident Insurance Plan?
What, according to you, is an emergency? I am sure, for the most of us, medical hospitalization will rank at the very top. And where do you keep money that you would touch only in the event of medical emergency? Where do you keep funds for medical emergency? Cash in Hand or Cash in Savings Bank account. A few of us also keep in fixed deposits. The reason is ease of … [Read more...] about ICICI Prudential Medical Advantage Feature: Is it any good?