Archive | Pension

NPS subscribers have to self-certify a FATCA declaration – Now online

[update – 25 May 2017] NSDL is now allowing NPS subscribers to update their FATCA self-certification online. You can do this by logging into your NPS account on https://cra-nsdl.com/CRA/ and clicking on ‘FATCA Self-certification’ under the main menu of ‘Transaction’. The FATCA submission will be authenticated via an OTP that you will receive on your registered […]

Continue Reading

Features of 8% assured return scheme for Senior Citizens

To protect our senior citizens from falling interest rates, the government has launched Varishtha Pension Bima Yojana 2017. This is a pension scheme that guarantees 8% return for 10 years. The launch date has not been notified yet. Government has launched this scheme earlier as well. A similar program by the same name ‘Varishtha Pension […]

Continue Reading

High equity allocation will be allowed in NPS

The young are often called reckless. But those who are young also have a large appetite for risk. And investing in equity offers a perfect backdrop for anyone who’s young and is ready to bet on risk. To make NPS (National Pension System) more suitable to the young (and not so reckless), PFRDA has decided […]

Continue Reading

Tax treatment of disability pension paid to Armed Forces

Income tax act does not clearly mention about tax exemption on pension paid to disabled Armed Forces. However, CBDT has given clarifications that disability pension received by armed forces is exempt from tax. Via Instruction No 136F.No. 34/3/68-IT(AI),dated the 14th Jan 1970, CBDT said that entire disability pension paid to officers of the Indian Army […]

Continue Reading

Pros and Cons of NPS

The National Pension System (NPS) is a relatively new tax-saving investment. The NPS was launched by the government to allow every Indian citizen to get a pension during retirement, especially those who are not salaried employees, self-employed professionals or those working in the unorganized sector. So, should you invest in NPS? Understand the pros and […]

Continue Reading

NPS Account Differences

The National Pension System (NPS) has two primary account types: Tier-I and Tier-II. A lot of investors get confused between these two account types. The following table explains the differences between the two account types. NPS Tier-I Account NPS Tier-II Account Status Default Voluntary Withdrawals Not allowed Allowed Tax exemption Up to Rs 2 lakh […]

Continue Reading