Can I invest in NPS even after retirement? Know the rules and regulations of the plan to make big funds in less investment
There is no tax on the amount received on maturity.
The benefit of tax exemption is available on investment in NPS.
Any person can invest in NPS.
New Delhi. Life after retirement If you want financial freedom, then you should invest in National Pension System ie NPS. This is such a scheme in which you can not only make a big fund for retirement, but also can arrange pension. The National Pension System provides people with the option of investing in corporate bonds, government securities or equity. Investing in NPS not only gives great returns but also gives tax exemption. Now the question arises whether one can invest in NPS even after retirement? The answer is yes.
You can continue investing in NPS even after retirement. The Pension Fund Regulatory and Development Authority (PFRDA) has made several changes to make NPS flexible. Under this, investing in NPS can be done if the age is above 60 and below 65. The subscriber can invest for a minimum of three years and till the maximum age of 70 years. 2 accounts can be opened in NPS. Tier 1 and Tier 2. The National Pension System was started in 2004 for government employees. In 2009 it was opened for all classes.
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get tax exemption
Tax exemption is available on the investment made in this scheme under Section 80CCD (1), Section 80CCD (1B), and Section 80CCD (2) of the Income Tax Act, 1961. Under section 80CCD (1B), you can be entitled to a tax deduction of Rs 50,000 annually by investing in NPS. It gets tax exemption of Rs 1,50,000 lakh under 80C.
this is the rule of withdrawal
According to the new rules, no person can withdraw the entire fund on maturity. It is necessary to buy annuity from 40 percent of the fund. Pension is given after retirement from this annuity. The remaining 60 percent of the fund can be withdrawn. If you do not want to withdraw the amount deposited in NPS even after retirement, then the government will allow you to do so. There is also no tax on the amount received on maturity.
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Tags: business news in hindi, investments, NPS, pension scheme
FIRST PUBLISHED : March 24, 2023, 07:30 IST