What is the tax treatment of NPS?
As per new rules, 60% of the corpus withdrawn at
the time of maturity is completely tax-free. The rest 40% has to be annuity.
Annuity income in the subsequent years will be taxable, based on the income tax
slab of the investor. However, the total limit of tax exemption on NPS
investment u/s 80CCD 1B is ₹50,000, which is over and above the ₹1,50,000 limit
under 80C, making the total to ₹2,00,000.
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Who can invest in NPS?
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