सोमवार, 22 जनवरी 2018

NPS and tax benefits

NPS

Section 80C also provides tax benefits on a retirement planning investment scheme known as NPS. Just like EPF, you get a tax deduction on both yours as well as your employer’s contribution (under Section 80CCD) in NPS. Your funds are also managed at comparatively lower charges as compared to most of the MFs or ULIPs. If you have already exhausted your 80C bracket of Rs 1.5 lakh, you can claim additional deduction of up to Rs. 50K u/s 80CCD(1B) for your contribution in NPS scheme.

To top it, 40% of your maturity corpus is exempt from tax, and the remaining 60% becomes tax-free if invested in an annuity plan.

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