As we are heading towards the final quarter of this Financial Year and everyone wants to freeze Tax Planning, National Pension System gives an opportunity to all such people to Save Additional Tax over & above limit of Rs. 1.50 Lakh u/s 80C. National Pension System allows an individual to save Rs. 50,000/- u/s 80CCD(1B). Any individual within the age group of 18-65 years now can enrol under NPS and avail additional tax benefits.
NPS was launched by PFRDA in the year 2004 for Central and State Government Employees only and subsequently, in the year 2009 the same was made open for all citizens of India. However, the scheme was unable to attract the masses at that time. PostBudget 2015 announcements, NPS has become much sought-after investment option just because a taxpayer can save additional tax upto Rs. 15,000/- by opening an NPS account and investing Rs. 50,000/per FY- in the scheme, provided he is in 30% tax bracket.
Entry Age - 18 years to 65 years
Exit Age: Any time between 60 - 70 years.
There are 2 types of Accounts in NPS:
Tier I- Non-withdrawable account. The contribution made in Tier I is exempted from Tax.
Minimum contribution per year – Rs. 1,000,
Minimum amount per contribution – Rs.500,
Minimum number of contributions - One per year
Tier II- Voluntary A/c with withdrawal facility. The contribution made in tier II is completely taxable.
Minimum contribution per year - Nil, Minimum amount per contribution – Rs.250
Esta historia es de la edición January 2018 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 January 2018 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.
