Nps Tax Benefits

Jump to

Centre likely to amend National Pension Scheme by year-end to enhance retirement payouts

Under the National Pension Scheme (NPS), retirees have the option to withdraw 60 percent of the accumulated corpus tax-free at the time of retirement, utilising the remaining 40 percent to purchase an annuity.
Retirement Saving Scheme: How to earn 50,000/month from National Pension Scheme (NPS)

Retirement Saving Scheme NPS: If you want to get a monthly pension of Rs 50,000 from NPS, you need to back-calculate the corpus requirement based on the 40% annuity rule. If you only use the mandatory 40% NPS corpus for purchasing annuity, then at an annuity rate of 6%, you need a Rs 2.5 crore NPS corpus. Of this, 40% or Rs 1 core will be used for purchasing annuity. This annuity (at 6%) will generate Rs 6 lakh yearly or Rs 50,000 monthly pension. Remember, this is when only 40% corpus is used for annuity purchase. You then also get Rs 1.5 crore (remaining 60%) as lump sum tax-free withdrawal. The numbers will change for different annuity rates. Watch the video to know how to make 50,000/month from NPS

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347

Nps Tax Benefits

Centre likely to amend National Pension Scheme by year-end to enhance retirement payouts

Retirement Saving Scheme: How to earn 50,000/month from National Pension Scheme (NPS)