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 July 2019 edition of Investors India.
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This story is from the July 2019 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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