Can I have both NPS and EPF?
Yes, You can opt for both NPS and PF from your employer. Also, you can continue self-contribution to NPS, even as your employer contributes. Your tax benefits are as follows: Your PF contribution is allowed as a deduction under Section 80C, wherein the maximum deduction amount is Rs 1.5 lakh.
Which is better NPS or EPS?
Hence, with higher exposure to equities in NPS, investing in it can fetch higher returns for investors. The employee has to make a minimum contribution of 12 per cent of his/her salary per month, which is matched by the employer towards EPS. These contributions are made towards the retirement fund of the employee.
How much will I get if I invest 50000 in NPS?
While a person with basic monthly salary of Rs 50,000 can get a total deduction of Rs 2.6 lakh (Rs 60,000 under section 80CCD(2) ) and if the basic monthly salary is Rs 6.25 lakh or above the maximum possible deduction of Rs 9.5 lakh (Rs 7.5 lakh u/s 80CC(2)) can be availed only from NPS.
Should I invest in NPS if I have EPF?
One can invest Rs 50,000 every year in NPS with higher exposure to equity and up to Rs 1.5 lakh in EPF so that they get income tax deduction up to Rs 2 lakh (Rs 1.5 lakh under Sectionn 80C for EPF investment and Rs 50,000 under Section80CCD (2) on NPS investment) and higher return as well.
Is EPF good investment?
EPF is a retirement benefit plan specifically for salaried individuals. Both the employer and employee will contribute to this scheme. The major benefit of investing in these plans is that you can start with a small amount of savings and end up earning a huge corpus of wealth when you retire.
How do I get a 30000 Pension?
The target to generate Rs 30,000 a month is achievable by investing in a mix of financial instruments. He should invest up to Rs 15 lakh in the Senior Citizens Saving Scheme (SCSS). It is the safest investment option for retirees and offers 8.6\% per annum, payable quarterly.
Should I switch from EPF to NPS?
Withdrawal from EPF is fully tax-free, provided the employee has served continuously for five ears or more, whereas NPS withdrawal is tax-free only up to 60\% (40\% until FY 2018-19) of the total amount. EPF has been beneficial for employees as it is considered as a retirement savings scheme.
What is better than NPS?
PPF vs NPS: Public Provident Fund (PPF) and National Pension System (NPS) are long-term investment options. While NPS scheme is fully retirement-oriented scheme PPF can be a retirement option if the PPF account holder holds it for long-term by extending it after 15 years maturity period.