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:
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
Understanding Momentum Funds
Momentum funds are a type of investment fund that focuses on companies experiencing positive momentum in factors such as earnings, revenue, and stock price movement.
Risks and opportunities associated with Small Caps
Small-caps are a stock-picker’s paradise.
How to navigate your portfolio through bull market a
Indian equities have been in a bull run for the past four years.
Choosing mutual fund schemes depending on your age to achieve life goals
The choice of mutual fund (MF) scheme might be influenced by one’s risk profile or age.
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.
Be Kind To Your Kidneys
The kidney is a vital organ in our body which is four inches long and two and a half inches in width.
