Thursday, 18 January 2018

Good news for Subscribers can withdraw up to 25 per cent after 3 years in NPS

Good News! Subscribers can withdraw up to 25% after three years in NPS
Pension Fund Regulatory and Development Authority (PFRDA) has removed the rules for partial withdrawal for the National Pension Scheme (NPS) customers. Pension regulator has allowed NPS customers who have contributed three years to 25 percent of the fund under certain conditions. Earlier, NPS customers were allowed to withdraw only after completion of 10 years from the fund.
Child adopted legally, procurement or construction of a residential house or flat, and the treatment of various diseases such as cancer of the kidney, stroke, major organ transplantation among other diseases, higher education and allowances for the marriage of children is. According to Hemant Contractor, chairman of PFRDA, "First partial withdrawal was allowed when a person remains a customer for 10 years. But there was a lot of demand from customers that 10 years is very long and the emergency They can not wait for such a long time. We listened to all worries and decided to allow partial withdrawal after three years. "He said that the withdrawal The permission will only be for some contingencies.
Under the budget of 2015-16, under Section 80CCD (1B), the government has taken NPS as a retirement product after providing additional tax benefit of Rs 50,000. Recently, the maximum admission age in NPS has increased from 60 years to 65 years. Both the salaried and self-employed persons receive income tax benefits on investment in NPS.
Analysts believe that this step is in the right direction as it gives the liquidity of the customers and allows them to fulfill their goals. There will be no tax liability on the customer for partial withdrawal. "Partial withdrawals have been exempted from tax. The government had announced a year ago that no partial withdrawal would be taxed."
Good News! Subscribers can withdraw up to 25% after three years in NPS
Personal finance experts suggest subscribing to NPS because it provides fund options and better return capability due to its equity exposure compared to the Employees Provident Fund (EPF) or Public Provident Fund (PPF). NPS comes with a complete investment option. A customer can choose a mix of equity, corporate bonds and government securities. Due to the possibility of high allocation in equity, the NPS could give better returns than other government supported retirement products.
Suresh Sadagopan, founder of Ladder 7 Financial Advisers, says, "NPS allows investors to participate in equity. For more than a long time, NPS may be a better bet, however, I would say that the final between NPS and EPF The option should be left to the investor, just because NPS can potentially give two-digit returns, it is not automatically created as a good vehicle. "100 Despite Ratist credit-oriented, EPF NPS
Tax treatment for EPF is EEE, which means investors' money is free from taxes, investment, and tax return. On the other hand, in NPS, 40 percent of the maturity period is tax-free, while another 40 percent is taxed when the monthly pension is earned in an annuity to earn. However, on the maturity, 20 percent of the fund is still paid under tax.