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JammuNPS, a most customer friendly & flexible pension plan in today’s time:...

NPS, a most customer friendly & flexible pension plan in today’s time: PFRDA

Date:

NL Corresspondent

 

Tawi: Pension Fund Regulatory and Development Authority (PFRDA) have stated that NPS is one of the most customer friendly and flexible pension plan in today's time.

Tax benefits on additional investment of Rs 50,000 u/s 80CCD (1B)- This additional tax benefit is exclusively available to NPS subscribers to claim tax deductions upto Rs 50,000 over and above the deduction u/s 80C. Effectively this translates into a total deduction of Rs.2.00 lakh for NPS subscribers i.e. Rs.1.50 lakh u/s 80C & Rs.50,000 u/s 80CCD (1B).

Tax benefits under Section 80CCD(2) – If an Employer contributes towards NPS Account of an employee (subscriber), the employee can avail deductions u/s 80 CCD(2) in addition to the tax benefits available u/s Sec. 80C, subject to a ceiling of 10% of salary or Rs 7.50 lakh.

Tax benefits on returns and maturity amount – NPS belongs to a covetous category of financial products which offers a tax treatment of EEE- exempt-exempt-exempt. Not only on investment but the returns and maturity proceeds of NPS are effectively tax exempt. This EEE tax treatment is available only to a selected few financial products.

Low-cost product – NPS is the lowest cost pension scheme in the . The compounding effect achieved through regular investment and low cost advantage provides an opportunity to accumulate a higher pension corpus during the working life.

In conclusion, it can be said that investing in NPS helps reduce one's taxable income apart from building a pension corpus for post-retirement life. Investing in NPS is easy and a subscriber has flexibility to contribute any amount above Rs 500 anytime and there are no restrictions on the number of transactions one can undertake during a year.”

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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