Do you invest to save tax?
Do you want to get more tax returns?
If yes, then NPS can be a great option for you.
NPS (National Pension System) is a voluntary pension scheme that provides you regular income after retirement.
There are many benefits of investing in this scheme, which include:
1. Rebate on investment even after the limit of Rs 1.5 lakh:
If you invest every year to save tax, then you should be aware of Section 80C of the Income Tax Act. Under this section, tax exemption is available on investments up to a maximum of Rs 1.5 lakh in a year.
But this limit of Rs 1.5 lakh includes everything from home loan principal payments, children’s school fees and EPF amount deducted from the salaries of salaried employees.
Obviously, for many employees this investment limit of Rs 1.5 lakh is soon reached.
NPS is a scheme in which after reaching the limit of Rs 1.5 lakh, tax exemption is available on additional investment of Rs 50 thousand.
Thanks to this additional exemption, you can increase your tax savings by investing a total of up to Rs 2 lakh every year in NPS.
2. Market Linked Returns:
Investing in NPS is market linked, which means you can get good returns on your investment.
3. Various Investment Options:
You get a variety of investment options in NPS, so you can invest as per your risk tolerance and financial goals.
4. Withdrawal Facility:
In NPS you get the facility to withdraw money even before retirement with certain conditions.
5. Loan Facility:
In NPS you also get the facility to take loan against the deposited amount.
6. Death Benefit:
If the account holder dies, the nominee receives the deposited amount and interest.
7. Tax-Free Withdrawals:
After retirement, you can withdraw 60% of your deposited amount tax-free.
How to open an account in NPS:
Opening an account in NPS is very easy. You can open an account by visiting any bank, post office or authorized service center of NPS.
Required Documents:
Aadhar card
PAN card
address proof
Photo
Some important points for investing in NPS:
NPS is a long term investment plan.
Consider your risk tolerance and financial goals before investing in NPS.
Invest regularly in NPS.
Review your deposits and investment options periodically.
NPS is a great pension scheme that provides you regular income after retirement.
There are many benefits of investing in this scheme, which include tax exemption, market linked returns, various investment options, withdrawal facility, loan facility, death benefit and tax-free withdrawal.
If you want to invest for retirement, then NPS can be a great option for you.