Who can invest in NPS Tier 2?
Eligibility
- You have to be a citizen of India. NRIs can also open it as long as they are Indian citizens.
- You have to be between 18 and 65 years of age. Special rules apply if you open an NPS Tier 1 account from the age of 60 – 65.
- You need to have an active Tier 1 account.
What is the minimum amount to invest in NPS?
The minimum NPS Tier 1 contribution is Rs 1,000 per annum. There is no maximum limit on your NPS Tier 1 contribution. The minimum initial contribution to the NPS Tier 1 Account is Rs 500.
Is withdrawal from Tier 2 NPS taxable?
On the basis of above discussion, it becomes clear that by no stretch of imagination the entire money on withdrawal from Tier II account can be taxed but only the amount of appreciation can be taxed on withdrawals.
What is the best way to invest Rs 1 lakhs?
The first two ways of investing your Rs 1 lakh could be bank fixed deposits and the tax saver bank fixed deposits. Bank fixed deposits you all know about it. As you all know bank failures in India are very rare.
When can I withdraw money from NPS Tier 2?
You can withdraw at any time from the NPS Tier 2 account. However, there is a lock-in of 3 years for government employees who are investing in NPS Tier 2 to avail of a tax deduction. This new provision for government employees was announced in a press conference in December 2018 but has not yet been implemented.
What are the benefits of investing in NPS Tier I?
Your investment in the NPS Tier I account is locked-in until the age of 60. Before the age of 60, you can make partial withdrawals for specific purposes or you can go in for a premature exit (as explained below). Under NPS Tier I, you can save and invest to claim the tax deductions available under version sections of the Income Tax.
What are the rules for opening an NPS Tier 1 account?
Special rules apply if you open an NPS Tier 1 account from the age of 60 – 65. You need to have an active Tier 1 account. However you can simultaneously open a Tier 1 and Tier 2 account. Lock-in: 3 years (For Government Employees). No lock-in for private sector employees. Returns: Depends on the asset allocation and pension funds chosen by you.