Tax Bonaza- for investing in National Pension Scheme (NPS)

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Tax Bonaza- for investing in National Pension Scheme (NPS)

For the tax payer it is a very great news that recently the Government has granted NPS exemption and make the NPS at par with other schemes like PPF & EPF.

In the earlier scheme, Withdrawal from NPS is partially taxable. Currently, out of 100%, 40% is accumulated towards annuity and if out of 60% of total fund, NPS investor is withdraw the amount at the time of retirement, only 40% is tax exempt and balance 20% is taxable.But now Government brings the NPS at par with other investment.

Such change is made for all investors whether it is a Government employee or any other.Also  Central Government rise it’s contribution to the NPS from the current 10% to 14%.The minimum contribution of the employees is stands at 10%. We should appreciate for such big change taken by the Government.

 

By- CA Monika Rathi

 

For more details regarding NPS you can follow link ….

https://thetaxtalk.com/2018/03/23/national-pension/

https://thetaxtalk.com/2018/04/23/nps/

https://thetaxtalk.com/2016/09/19/how-to-invest-in-national-pension-scheme-nps/

https://thetaxtalk.com/2016/07/11/save-additional-tax-by-investing-in-nps/

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