Tax incentives for NPS have gotten better and better over the last few years. In 2018, NPS almost became an EEE product. Almost. The entire lump sum withdrawal at the time of retirement (60 years) became exempt from tax. The same was notified in Union Budget 2019 too. In my previous posts on NPS, I have solely focussed on if and how much you must invest in NPS. Here is my … [Read more...] about NPS: Your Employer offers to contribute, Should you sign up?
NPS tax benefits
The tax regime for NPS has gotten better and better over the last few years. In December 2018, the Government has almost given EEE (Exempt-Exempt-Exempt) tax status to NPS. Is NPS really EEE? NPS has almost attained EEE (Exempt-Exempt-Exempt) tax status. This is in line with the other popular retirement products such as EPF and PPF. However, there is still some … [Read more...] about With NPS almost EEE, should you now invest in NPS?
In this post, I will discuss tax benefits for NPS and the tax treatment of maturity proceeds. I will discuss if it makes sense to invest in NPS now or if you should invest in NPS for the exclusive benefit of Rs 50,000 under Section 80CCD(1B). NPS Tax Benefits (Latest) This part has not been affected by the latest budget. Only contribution to Tier-I NPS account is eligible for … [Read more...] about NPS Tax Benefits and Tax Treatment at Maturity (Latest)
PFRDA, the pension regulator, had come out with Exit and Withdrawals under NPS in May 2015 and provided much needed clarity. The regulations made provisions for partial withdrawals from NPS and provided a few more options at the time of exit from NPS. At the time of exit from the NPS system, all NPS subscribers (both Government and All Citizens Model Subscribers) have the … [Read more...] about You can contribute to your NPS account even after you turn 60