ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » Personal Finance News

NPS scheme: Income tax, withdrawal rules you should know while investing in National Pension System

NPS scheme: In National Pension System investors need to be extra vigilant about the income tax exemption rules at the time of NPS registration

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
NPS scheme: Income tax, withdrawal rules you should know while investing in National Pension System
NPS scheme: If the money is withdrawn prematurely from the NPS account, then one would get income tax exemption on only 25 per cent of the net NPS withdrawal.

NPS scheme: To avail income tax benefits, an investor invests money in various investment tools like insurance, mutual funds, National Pension System or NPS, PPF, Sukanya Samriddhi Yojana, etc. However, due to some negligence in regard to the income tax rules, they fail to get full tax benefit, which they had assumed at the time of investment. Especially, when it comes to government schemes like the NPS scheme, investors need to be extra vigilant about the income tax exemption rules and that too at the time of NPS registration itself.

On income tax rules applied in the NPS scheme, tax expert Sunil Garg said, "An investor gets income tax exemption on the NPS maturity amount. At the time of NPS maturity, an investor gets income tax exemption on 60 per cent of the maturity amount. Rest 40 per cent is not exempted from the income tax as it is used for the pension of the investor."

WATCH Zee Business TV LIVE Streaming Online -

Asked about the NPS withdrawal rules, Garg said, "Sometimes an investor withdraws his or her money before the NPS maturity. In that case, the income tax rule applied to the withdrawal will be different. If an investor withdraws from NPS account prematurely, then the income tax act 1961 says that the NPS account holder will get income tax exemption on only 25 per cent of the total NPS withdrawal amount. Rest 75 per cent amount will fall under the purview of income tax liability and one would get his or her NPS premature amount into one's bank account after the income tax liability cut from one's net NPS amount."

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
National Pension SystemNPSIncome taxMoneyPersonal FinanceRetirement Fund
Written By: ZeeBiz WebTeam
Edited By: Harish Dugh
Updated: Wed, Dec 04, 2019
09:50 am
New Delhi, ZeeBiz WebDesk
RELATED NEWS
NPS calculator: How much investment in National Pension System is required to get Rs 2.5 lakh monthly pension NPS calculator: How much investment in National Pension System is required to get Rs 2.5 lakh monthly pension
Raghuram Rajan warns against shifting to Old Pension Scheme from National Pension System Raghuram Rajan warns against shifting to Old Pension Scheme from National Pension System
PFRDA mulling to bring NPS scheme with assured returns by June next year PFRDA mulling to bring NPS scheme with assured returns by June next year
Best and worst pension systems in world ranked: Check where India ranks in survey Best and worst pension systems in world ranked: Check where India ranks in survey
Old Pension Scheme vs NPS - Basic differences and which is better? Old Pension Scheme vs NPS - Basic differences and which is better?

LATEST NEWS

New income tax regime: How to pay zero tax on rental income upto Rs 10 lakh

PM Kisan Yojana 14th installment to be released soon: Check beneficiary status

Amazon UK trains Alexa to offer advice on periods

Maharashtra farmers to get Rs 6,000 a year under a new scheme approved by Cabinet

Samsung Galaxy F54 5G launch on June 6: 108MP camera, nightography and much more - Details

IRCTC reports over 30% rise in Q4 profit; board announces 100% dividend

8 killed, 20 injured as bus falls off bridge in Jammu

IPL 2023 Winner List 2023: CSK become champions of TATA IPL 16 - Check who won Orange Cap, Purple Cap, Fairplay, and other awards

No heat wave at Delhi's primary weather station for first time since 2014, IMD officials say

Torrent Pharma dividend news 2023 dividend payout record date payment date Q4 results

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV