Monday, March 16, 2015

NPS - Tax Treatment on Withdrawal

 

The Budget provides a tax benefit on NPS investments but has done nothing to address a long standing problem. Under the current rules, the NPS corpus is taxable at the time of withdrawal. That means the 60% of the corpus you are allowed to take out at the age of 60 will be taxable. This needs to be fixed to provide a level playing field to the NPS. Other retirement options such as PPF and Provident Fund are tax free on withdrawal. Even insurance policies give tax free income under Sec 10 (10d).

The other problem is that of compulsory annuities. Up to 40% of the corpus must be used to buy an annuity that gives monthly income to the investor. This is a big put off for investors because the annuity market in India is not very developed. Annuity rates are not attractive and the income is also taxable.

 
 
Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

0 comments: