Is it advisable to invest in national pension scheme after budget ?

POSTED BY Mukul Machave ON March 18, 2015 3:51 pm COMMENTS (2)

Hi manish ,i wanted your advise .i wanted to open account in national pension scheme .After budget is it advisable to open nps account for above 80 c section benefit. Limit for nps of additional 50000/- is it under 80 -c section or above ?

2 replies on this article “Is it advisable to invest in national pension scheme after budget ?”

  1. observer says:

    Hi,

    Pension for central government employees who joined before 1995 ,
    is being paid which is a huge burden on the tax payer.
    A govt. employee while in service ,contributes only 10 % of his
    pay towards pension , whereas when he retires he
    is paid 40 % of pay , plus another 20 % as dearness
    allowance ,throughout his retired life. Hence govt
    pays the difference amount (60% – 10% , ie., 50 % )
    of salary as pension from the budget .This is a huge amount
    about 1.5 lakh crore per annum (10% of central govt budget)
    This is like robbing money from every tax paying citizen
    and paying the retired employees ( who form about 1 % of population)
    Let the govt refund the full PF contribution made by govt employees
    or bring them under Employee Pension scheme 1995.

    Regards,
    Tax Payer

  2. sandhu b says:

    50000/- for NPS is over and above 150000/- of 80C.
    opening a NPS or not should be based on your requirement and merits or demerits of the scheme. merely opening NPS for this tax benefit may not be adviseable because these IT exemtions are prone to change in every year budget, who knows this exemption may get withdrawn or merged with 80C next budget only. once put in NPS your money not only will remain in NPS till your retirement age but you will be forced to contribute minimum specified amount to NPS every year till then to keep it operative otherwise you may loose this whole amount totally
    regards

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