Simply Save podcast | What lies ahead of the National Pension System this year?
How is the NPS expected to change in the coming year?
June 23, 2020 / 04:54 PM IST
June 30 is the extended deadline for making tax-saver investments for the financial year 2019-20. The National Pension System (NPS) is one such investment, a retirement-planning avenue that offers tax deductions under section 80C of up to Rs 1.5 lakh, an additional Rs 50,000 under section 80CCD (1B) and also on employer’s contribution of up to ten per cent under section 80CCD (2).
NPS is set for a major structural overhaul, with the pension regulator Pension Funds Regulatory Authority of India proposing a hike in pension fund management charges and introduction of systematic withdrawal of the NPS corpus in addition to the current framework of using 40 per cent of the corpus to compulsorily buy annuities.
In this episode of Simply Save, Moneycontrol's Preeti Kulkarni talks to Sumit Shukla, CEO, HDFC Pension Management Company to discuss what the year 2020-21 holds for NPS and how the proposed changes will affect NPS subscribers.Tune in to the podcast for more.