POSTED BY July 26, 2012 2:28 pm ONE COMMENTON
Looking at returns provided by NPS in last two years, I am feeling more towards contributing in NPS for planning the retirement.
I do not understand taxation involved in there? Could someone please explain?
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One reply on this article “NPS: taxation for Teir I”
NPS taxation is simple
1. If you invest in NPS , upto 1 lacs will come under 80C benefit
2. Investments in the New Pension Scheme upto 10% of a persons basic pay is exempt from income-tax under section 80CCD(2). This is over and above the Rs. 1,00,000 under 80C and other deductions.
The biggest issue with NPS is the unclarity on the pension . If you get decent returns on NPS, thats not enough, you should get good amount of pension also , right now there is no clarity on that, what if its 4% of your corpus each year the end ?