NPS is a market linked, defined-contribution product that allows you to invest on a regular basis in the funds of your choice. Being a market-linked product, returns are based on the performance of the fund that you choose.
In India, as retirement products, both PPF and NPS are very popular among investors. But experts believe PPF is better suited for those who want flexibility in their investment while those who are investing only for their retirement, NPS is a better investment option.
From taxation point of view by investing into NPS, one can avail a deduction of Rs.1.5 lakh under section 80C and also an additional deduction benefit of Rs. 50,000 under section 80 CCD. For the tax payee in the highest tax bracket, it means a savings of Rs.15,600 a year.
Corporate Sector benefits for Corporate Sector:
*Benefits for a Corporate Subscriber: An additional tax benefit, apart from the above two, can be availed by the subscribers under the Corporate Sector.
*Corporates: Up to 10 per cent of an individual’s salary (Basic + DA) can be deducted as ‘Business Expense’ from their Profit and Loss Account
Some other valuable learning about NPS are noted below that will help you know more about it and its usage:
Esta historia es de la edición July 2019 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 2019 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
How To Build And Maintain A Long-Term Portfolio
Building a robust long-term portfolio involves two steps. First, you must decide on your asset allocation-essentially the distribution of your investments across various asset classes such that it aligns with your financial goals and risk tolerance.
Learn The Magic Of Self-Talk
There is perpetual self-talk taking place inside all of us
Health Cover: How Family Floater health insurance plans work to your advantage?
The right amount of health insurance coverage can help you stay on track with your finances and life goals. In the absence of health insurance, one may be forced to delve into current investments, jeopardising ambitions such as children's education and home ownership.
Empowering Women: Understanding Inheritance Rights in India
In the intricate tapestry of India's diverse inheritance landscape, where the threads of religious laws weave a complex pattern, don't entrust your legacy to fate's capricious hand. Instead, wield the brush of certainty by crafting your will.
Protecting Those Who Matter Most: Understanding the Importance of Life Insurance for Our Loved Ones
Mr. Sanjiv Bajaj is the Jt. Chairman & MD, Bajaj Capital, building the platform for the Business leaders of the Financial Services and Advisory sector to exchange their vision, experience, and views on making the right financial decisions.
Unit-Linked Insurance Plans: How to make use of ULIPS to meet long-term goals?
Unit-linked insurance plans, or Ulips, are a good option if you wish to combine life insurance with savings for long-term goals in one financial plan.
Why Should One Consider Investing In A Large Cap Fund?
An investor’s ability to create wealth in the longterm is directly linked to how well they create an all-weather investment portfolio.
Meeting Medical Costs with Health Insurance Plans
A medical emergency can occur at any time and to any person.
Water: The Elixir of Life
If there is magic on the Planet Earth, it is contained in water - Loran Eiseley.
The 100 Crore Wealth Legacy! A Vision
Generating 100 crores from modest investments is feasible with a long-term outlook, though market timing remains elusive.