ASK THE EXPERT

Dear Sir, I attended your webinar on post-retirement financial planning. As advised by your good self, I invested in NPS after retirement.

- Anil Chopra

Ques. Although NPS can be redeemed on completing the age of 60 years. But since I opened the account after 60+, 

1. When can I redeem the NPS at the earliest i.e. at what age?

2. Is the yearly return/gain taxable? Anil Rastogi, Delhi (on email)

Ans. Dear Mr Rastogi, you have to contribute a minimum of Rs one thousand to your NPS account for at least three consecutive years before you can exit or redeem from it. You can exit any time before you attain the age of 75 years.  Return or gain is not taxable. At the time of exit, you may withdraw upto 60% of corpus (fund value) tax free. Balance will be converted into monthly pension and this pension income is taxable. 

Ques. Dear Sir, my age is 40 years, and my current salary package is ₹20 lakhs per annum. My monthly take home salary is ₹1.35 lakhs, and I am planning to take a home loan. How should I plan my savings, investments and home loan EMI, please guide me.
Rakesh Jaiswal, Noida

Ans: Dear Mr. Jaiswal, the first important thumb rule is that you must strive to save at least 30% of your salary that is ₹6 lakhs per annum or ₹50,000 per month.