NPS Adds up the Ladder! Extra Benefits..?
Many of the schemes introduced by the central government will ensure that life goes smoothly without financial difficulties after retirement. As part of that, the central government introduced a new pension scheme many years ago called the National Pension System. The Pension Fund Regulatory and Development Authority (PFRDA) has recently changed the rules of the Pension Fund Regulatory Authority. Let us now know what those rules are.
According to the latest rules changed by the PFRDA, government employees can get an additional exemption of up to Rs 50,000 under the National Pension System as per the rules prescribed under Section 80CCD (1B). Up to 25% of the money deposited in the NPS account can be withdrawn before the due date. Up to 60 per cent of the money deposited in NPS after retirement is also tax-deductible. But only another 40 per cent of the annuity must be taxed on the purchase.
If anyone wanted to get out of NPS before the deadline, there would have been a limit of Rs 1 lakh, but now it has been increased to Rs 2.5 lakh. Those who want to join NPS are now 65 years old. If you join NPS after 65 years, you have to continue for another three years. There is no possibility of withdrawing the amount previously invested from the MPS.
Now, with the latest rules and regulations, the Center has also made it possible for anyone with an NPS fund of less than Rs 5 lakh to withdraw from the NPS even after retirement.