NPS Benefits: NPS ie National Pension System is considered a great scheme for retirement. Contribution is made in this scheme from the age of 18 to 70 years. Many types of tax benefits are available on this contribution.
Along with this, your future is also secured. NPS is ac to invest for retirement. After retirement, a fat fund is prepared for your future. NPS is managed by PFRDA i.e. Pension Fund Regulatory and Development Authority. Why should you invest in NPS, let’s understand it in 5 points.
1>> NPS Investment ie investing in NPS gives the benefit of deduction under section 80C, whose limit is Rs 1.5 lakh.
2>> Tax benefit is also available under section 80CCD (1B) on NPS investment. This benefit is different from the benefit available under section 80C. A deduction of Rs 50,000 is available under this section. In this way, a total tax benefit of Rs 2 lakh is available.
3>> Tax benefit is also available on NPS under 80CCD(2). Under this section, if an employer deposits money in the NPS account of his employee, then the employee gets tax exemption. The benefit of this section is available in addition to section 80C. Its limit can be up to Rs 7.50 lakh or 10% of the salary.
4>> National Pension System comes under “EEE” category. Tax benefit is available on investment. The return and maturity amount are also completely tax free.
5>>NPS is one of the cheapest pension scheme in the world. The benefit of compounding is available in the long run. Due to this, a big corpus is prepared for your future. At least 500 rupees can be invested in this.
