NPS- The Right Choice To Build Post-retirement Wealth

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.

-  Dr. Jyotsna Joshi

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: