POSTED BY April 13, 2012 3:22 pm ONE COMMENTON
Have started giving 10% of Basic to NPS. This is saving me 30% on my taxes in the yr of deduction, however the money being invested susbequently gets locked in till retirement (in my case 25 yrs or more) in Tier 1 account.
Is the money post retirement expected to be tax exempt totally (both the invested amount and the additions) and if yes what kind of returns can be expected on annuities that this money will get invested in post retirement? (Curious to know the kind of returns that are being offered to someone who retires say in a years time…understand a lot could change in 25 yrs)
If I want to stop this investment say due to some financial hardship can this be withdrawn as a taxable component?