National Pension System Nps As Tax Saving Instrument

Post retirement, a regular monthly income ceases and in order to continue the current lifestyle, one needs to make proper financial arrangement to stay financially independent after retirement. Enrollment in Pension/Retirement schemes can ensure a financially independent life to lead. A regular pension serves as a means of financial stability and security, during the post-retirement life. A pension scheme helps you to accumulate savings and get a regular income after retirement.

Table Content

  • Increasing Life Expectancy
  • Brief about National Pension System (NPS)
  • Benefits of Investing in National Pension System (NPS)
  • Tax Benefits under National Pension System (NPS)
  • 1. NPS Tax Deduction under Section 80CCD (1)
  • 2. NPS Tax Deduction under Section 80CCD (2)
  • 3. NPA Tax Deduction under Section 80 CCD(1b)
  • Snapshot of Tax Benefits Under NPS
  • Tax Exemption on Various Types of Withdrawals
  • 1. Withdrawals at Retirement/at 60 years
  • 2. Withdrawal before Retirement
  • 3. Withdrawal Upon death
  • 4. Partial Withdrawals
  • Bottom Line
  • Related posts:

Increasing Life Expectancy

The life expectancy in increasing in India and you may need to accumulate more wealth to fulfill your post-retirement needs.

As per United Nations Population Division, world’s life expectancy is estimated to reach 75 years by the year 2050 from the present level of 65 years. According to statistics released by the World Bank, life expectancy in India in 2015 is 68 years compared to 41 years in 1960. In 2011, life expectancy in India was 62.3 years for males and 63.9 years for females and in 2015, it is 67.3 years for males and 69.6 years for females. Life expectancy in India is increasing at a fast pace.