Current time, everyone knows about NPS. Especially if you are serious about savings, then you must have heard about the NPS, or National Pension System. Investing in it secures retirement and makes it easier to get a monthly pension. The special thing about this investment scheme is that not only does it benefit you after retirement, but it also gives you tax exemption. Also, a large amount can be achieved according to the investment. Another feature is that the large amount you are getting after maturity does not even attract any tax. Now this scheme has been made better so that you can continue to invest in it not only while staying in the job but even after retirement.
What is the new rule?
According to the new rules associated with this scheme, those who have retired and want to continue it can keep it. The Pension Fund Regulatory and Development Authority (PFRDA), which runs the scheme, has made several changes in it, making it better. After the new changes, now even at the age of 60 to 65 years, you can invest in the scheme.
Provision for 60 percent withdrawal
The entire fund cannot be withdrawn after investing under this scheme. It is mandatory for the depositor to keep forty percent of the deposit in the deposit. Which is used for annuity. The pension is given from this amount on the retirement of the depositor. If the depositor wishes, he can withdraw 60 percent of the amount at once. Some people do not want to withdraw the amount even after retirement. This has also been allowed now.
How much tax exemption is available?
By depositing in this scheme, the depositor also gets tax relief. According to the tax rules, depositors can get a tax exemption under 80CCD(1), 80CCD(1B), and 80CCD(2). Talking about Section 80CCD (1B), investing in this scheme can get an extra discount of up to $50,000. This exemption is available in addition to the exemption available under Section 80C.
