POSTED BY February 15, 2014 12:05 pm ONE COMMENTON
Hi Manish, I was browsing to get some information of retirement planning schemes. Came to know of NPS which is regulated by PFRDA and looks a good option to me. Apart from a very low fund management charges, it also has the benefit of Tax Exemption under sec 80CCD-2 over and above the 1Lac exemption under 80C subject to a cap of up to 10% of basic salary. I wanted to know your views on this.
I know the matured amount if withdrawn will be taxable, and so I wish not to withdraw but convert the entire corpus into annuity. I could have opted for Mutual Funds(SIP) as suggested in some of your/others articles but that requires lots of descipline. Whereas through NPS the amount will get deducted at source (just like PF) and I am forced to continue the account till retirement(which I want). Would request you to please share your views on the same.