{"id":20704,"date":"2021-03-06T15:55:30","date_gmt":"2021-03-06T10:25:30","guid":{"rendered":"https:\/\/www.fundsindia.com\/blog\/?p=20704"},"modified":"2021-03-06T15:55:30","modified_gmt":"2021-03-06T10:25:30","slug":"tackle-tax-with-nps","status":"publish","type":"post","link":"https:\/\/www.fundsindia.com\/blog\/nps\/tackle-tax-with-nps\/20704","title":{"rendered":"Tackle Tax with NPS"},"content":{"rendered":"\n
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The Tax Season is here! <\/strong>And, <\/strong>if you are <\/strong>looking out to maximize your tax savings, let us introduce you to the National Pension System (NPS)<\/strong>. NPS is a government-sponsored low-cost retirement solution. Retirement is a worry for most private sector employees today. With non-pensionable jobs occupying a major part of the job market, a retirement planning solution is the need of the hour. NPS is a primary investment avenue devised specifically for the pension tension. And it comes with attractive tax benefits of over Rs. 2 lakhs!<\/strong><\/p>\n\n\n\n

What is NPS?<\/strong><\/h2>\n\n\n\n

NPS is a system regulated by Pension Fund Regulatory and Development Authority (PFRDA) and promoted by the Government of India, to provide a pension opportunity to every Indian. Any person within the age limit of 18-65 can open an NPS account. It encourages you to save regularly during the earning phase of your life so that you can reap the benefits when your earnings stop. Don\u2019t worry about liquidity, for you also have the option of withdrawal after a minimum period of 3 years.<\/p>\n\n\n\n

Benefits of NPS: <\/strong><\/h2>\n\n\n\n
  1. Tax Benefits <\/li>
  2. Well-regulated Investments <\/li>
  3. Diversification of investments<\/li>
  4. Flexibility<\/li>
  5. Liquidity<\/li>
  6. Low-cost<\/li><\/ol>\n\n\n\n

    We\u2019d like to elaborate on a few of these points, so as to give you the best view of this investment. <\/p>\n\n\n\n

    Tax Benefits:<\/strong><\/h2>\n\n\n\n

    NPS proves to be an efficient tax-saving investment by providing tax benefits under 3 provisions. On retirement, you are entitled to a tax-free lump sum withdrawal upto 60% of the corpus. Apart from this, you get the following tax benefits by investing in NPS.<\/p>\n\n\n\n