You are still young and want to start saving for your retirement. You want to ensure that you get a regular income after retirement. For this reason, you want to invest in a pension plan. Which pension plan do you pick up? There is NPS (National Pension Scheme) and there are several pension plans from the insurance companies. Which one would you pick? In a pension … [Read more...] about NPS vs Pension Plans from Insurance Companies: Which is better?
NPS vs PPF is not an easy question to answer, but why should you face such a question? Because no one has an unlimited amount of money to invest. Therefore, when we must make an investment choice, "This or That" or "X vs Y" or "Which is better" questions invariably pop up. Whether we talk about tax-saving or retirement or creating wealth, you will face such dilemmas. … [Read more...] about NPS vs PPF: Which is better?
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?
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?
The Government of India has brought about a few important changes to NPS (National Pension Scheme). All the changes are beneficial for the NPS investors. Some of the changes are only for the Central Government Employees while the others apply to all the NPS subscribers. Let’s go through the changes in detail. Change # 1 (Taxation of NPS Maturity proceeds) This change … [Read more...] about Good News: Lumpsum withdrawal from NPS is now exempt from tax
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 increased the maximum age of joining under National Pension System from 60 to 65 years. Here is the link to the circular. The joining age has been increased for All Citizens model (including Corporate Sector NPS). No such provision for Government sector NPS. Please understand investors were already allowed to continue their existing NPS accounts until the age of 70. It … [Read more...] about If you are a Senior Citizen, should you invest in NPS?
Have you shifted your NPS PoP to eNPS? We know that shift to eNPS helps reduce the cost of investment by a small margin. However, once you have shifted to eNPS, you may face a problem in updating details in your NPS account. After all, now, you don't have a physical PoP. If you have to submit a form or document, you can't do it visiting a bank branch (PoP). As I … [Read more...] about How to update information in your NPS account through eNPS portal?
Have you been investing in NPS? If not, I am not sure there are some reasons for staying away from NPS. Some of the common (and most of them valid too) reasons for not investing in NPS are: #1 Your money is locked in until the age of 60 Yes, you can’t access your money until the age of 60 or you can access only a small portion of it before 60. That is a problem. But all … [Read more...] about What are the problems in NPS? Why investors stay away?
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?