Most people believe that by investing money in NPS, pension is guaranteed for old age. But, do you know that NPS gives you many benefits even in your youth? Remember, these benefits are available separately along with eliminating the worry of money in old age.
After the announcement of Unified Pension Scheme, the tension regarding pension has not reduced. But, if you are planning for retirement, then there is NPS. And if you have already taken NPS, then forget about the tension of your old age, you will get tremendous benefits in your youth itself. NPS is a very good scheme. Investing money in it gives a very good return. Most people believe that by investing money in NPS, pension for old age is guaranteed. But, do you know that NPS gives you many benefits even in the days of youth. Keep in mind, these benefits are available separately along with eliminating the worry of money in old age. Let us know what benefits you get in retirement from NPS.
1- Get more tax exemption
Tax exemption is also available on the money invested in NPS. This tax exemption is also not a small one. Tax exemption is available on investment in NPS under section 80CCD of Income Tax. It also has two sub-sections – 80CCD(1) and 80CCD(2). Apart from this, 80CCD(1) has another sub-section 80CCD(1B). You can get a tax exemption of Rs 1.5 lakh under 80CCD(1) and Rs 50,000 under 80CCD(1B). Apart from this exemption of Rs 2 lakh under 80CCD(2), you can also get more income tax exemption.
Benefits from the employer
You get tax exemption on your investment in NPS from the employer. Under this, you can invest up to 10 percent of your basic salary and dearness allowance in NPS and you will get tax exemption on it. On the other hand, if you are a government employee, then this figure can be up to 14 percent for you. Most companies provide NPS facility. You can invest in NPS through the HR of the company. You will be able to get additional tax exemption.
2- There will be no unnecessary expenditure
To live a better life in old age, it is necessary to invest in youth. Although there are many schemes and tools for investment, but the biggest advantage of NPS is that you can withdraw the money deposited in it only after retirement. This means that unlike other schemes, its lock-in period is not 5 years or 15 years, but till the age of 60. In this way, the investment of the youth remains safe for old age. If the lock-in is less, then many times people use that money to buy a car or house or in some medical emergency, which increases the tension of old age.
3- As much risk, so much return
In all investment schemes, you get fixed returns or you get such returns over which you have no control. If you invest money in NPS, then you can decide for yourself how much money you want to invest in the stock market and how much money in fixed return tools. There is a capacity to take more risk in youth. In such a situation, you can earn more returns with more risk, which will help you accumulate a large corpus in the coming days. With increasing age, when you feel that you want to take less risk, then change the investment in NPS accordingly, which will benefit you.
