Allocation to midcap stocks aside, tax benefits under Section 80C and Subsection 80CCD (1B) also make National Pension System attractive
Being designed specifically for retirement, investing in the NPS shouldn’t be random or just to get the extra tax benefit
The Tier 1 account is covered under EET (Exempt Exempt Taxed) regime
Union Budget 2016 can offer various tax incentives to mutual funds in order to expand financial inclusion programme.
NPS offers you to save for your golden years with tax benefits on your investments. However, the amount of pension is not guaranteed and depends on the accumulated corpus and rates available at the time of vesting.
Budget 2015 has given additional tax benefit on investments up to Rs 50000 a year for investments in National Pension Scheme. This increases the scope for saving income tax
An individual / HUF can save taxes up to Rs.30,900/- for taxable income up to Rs 1 crore in FY 2013-14. Tax savings would be Rs.33,990/- in case the taxable income exceeds Rs 1 crore.