The following is a communication clarifying tax savings through the National Pension Scheme (NPS) from the Pension Fund Regulatory and Development Authority (PFRDA). Click on the image to enlarge. I am posting it purely by way of information because I have received several emails on the subject. This is not a recommendation for NPS. If you are considering using the NPS for saving tax or for your retirement, please do read the following:
The PFRDA chairman writes, "it is important to save for retirement, but also effectively and efficiently".
An effective and efficient retirement plan involves investing for retirement.
You can plan for your retirement with a lot more freedom, with lot less tax outgo and with a lot more returns (fingers crossed!) with a combination of equity mutual funds (or stocks) + PPF+ EPF. Do not invest in a product with poor liquidity and unclear taxation status (upon withdrawal).
Subscribers want clarity on the taxation angle and not the tax-saving angle. PFRDA is aware of this. Let us hope that their next newsletter will shed light on this.
This note clarifies that government employees can now invest separately in Tier 1. This was not possible earlier. Not suggesting that you do it considering they have no control over the asset allocation. As of now they have only 15% equity exposure. Most of the folio has long-term GOI bonds.
Subscribe to get posts via email"How to" articles; unbiased analysis; free, yet comprehensive calculators and money Management solutions delivered to your inbox!
Buy our New Book!You Can Be Rich With Goal-based Investing A book by P V Subramanyam (subramoney.com) & M Pattabiraman. Hard bound. Price: Rs. 399/- and Kindle Rs. 349/-. Read more about the book and pre-order now!