Suppose you have 5 lakh rupees in your NPS, now under the new change you will be able to withdraw all your money at once. The government is contemplating such a change.
National Pension System
Now investors will get more profit in NPS i.e. National Pension System. Also, investors will now be able to withdraw more money under this scheme. In fact, the pension fund regulator is in talks with the government to make changes in the rules of NPS. Many changes are being prepared including more tax exemption, increasing the interest of insurance agents, linking the scheme with inflation, which will directly benefit the investors.
Supratim Bandopadhyay, Chairman, Pension Fund Regulatory Development Authority has informed that talks are being held with the government to make various changes in NPS. Some measures have also been started to make the National Pension System better. While some are being considered by the government.
how to get more money
Under the changes in the National Pension Scheme, investors will now be able to put their entire fund in the Systematic Withdrawal Plan, which will increase their profit. Currently, investors can withdraw only 60 per cent of their corpus at the time of retirement, while the remaining amount has to be used to buy an annuity. After which, on that money, they keep getting an income for the rest of their life.
Investors will get these benefits
- Now you will be able to withdraw the entire money, not 60 percent
- Linking annuity with inflation will give more returns
- The idea of increasing the limit of tax saving amount from 50 thousand to 1,00,000 lakh rupees
- According to the rising inflation, the return on pension will be given
- Idea of making pension amount tax free up to a certain limit
Adding to inflation will give more profit
There is talk of linking the annuity received under this system with inflation. The advantage of this will be that the returns of the investor’s money left will increase with rising inflation. With the help of linking the annuity index with inflation, investors are being considered to get more returns. Such changes will make this system even more attractive.
You can withdraw all the money at once
Suppose you have 5 lakh rupees in your NPS, then now under the new change you will be able to withdraw all your money at once. The government is contemplating such a change so that any investor can withdraw his entire money in one go, if needed. At present, investors get only 5% return under this system, due to which investors do not show much interest in it. After adding to inflation, due to higher returns in it, the number of investors will also increase.
Will save more tax
Along with getting more profit, now there will be more tax saving under NPS. PFRDA has suggested to the government that the limit of tax saving amount by investing in NPS should be increased from the current Rs 50,000 to Rs 1,00,000. If this limit is doubled, then investors will also get a lot of benefit in tax saving. The regulator says that a notification regarding this will be issued in the next few days. It is expected that after this the new system can be implemented soon.
Consideration of making pension amount tax free
According to Supratim Bandopadhyay, chairman of the Pension Fund Regulatory Development Authority, it is being suggested to the government that under this system, the amount of pension coming with the help of investment in annuity should be made tax free up to a certain limit. It can be up to 10,00,000 annually. It is either made tax free and a nominal tax should be levied on it. If this happens, then the tax benefit of the annuity will also be available to the investors.
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