Business Standard

NPS funds: Restrict investment to Rs 50,000 for tax benefits, say experts

But taxation at maturity and compulsory annuities are dampers



Sanjay Kumar Singh
As the National Pension System (NPS) celebrates its ninth anniversary on May 1, the glass continues to remain half full for investors. While the returns from NPS funds over the past year have been sound, and many investor-friendly changes to norms were announced by the regulator, the costs associated with NPS have moved up for what was originally envisaged as a low-cost product. Taxation on maturity and compulsory annuitisation are other bugbears that prevent investors from investing in NPS beyond the tax deduction limit.      

Sound returns: Over the past year, NPS equity schemes (E) have, on an average,

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First Published: Apr 29 2018 | 8:29 PM IST

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