Budget 2017 - 18: Changes to National Pension System (NPS)
Budget 2017-18 has proposed two changes to the national pension system. No, it not what you are looking for!!
Change I:
A subscriber whose NPS account is at least 10 years old will be eligible for withdrawing 25% of his/her contributions (without accrued income earned thereon). Employer contributions (if any) can not be withdrawn.
This 25% is now tax-free upon withdrawal but will be within the 40% overall tax free withdrawal limit. Full details of when one can withdraw is here: NPS: Partial Withdrawal Rules
Change II:
Individuals who have subscribed to NPS on their own can now claim tax benefit of up to 20% of their salary under section 80CCD(1) which is part of 80C. Of course, the extra 50K under 80CCD(1B) is also there.
Budget 2017-18 has proposed two changes to the national pension system. No, it not what you are looking for!!
Change I:
A subscriber whose NPS account is at least 10 years old will be eligible for withdrawing 25% of his/her contributions (without accrued income earned thereon). Employer contributions (if any) can not be withdrawn.
This 25% is now tax-free upon withdrawal but will be within the 40% overall tax free withdrawal limit. Full details of when one can withdraw is here: NPS: Partial Withdrawal Rules
Change II:
Individuals who have subscribed to NPS on their own can now claim tax benefit of up to 20% of their salary under section 80CCD(1) which is part of 80C. Of course, the extra 50K under 80CCD(1B) is also there.
No comments:
Post a Comment