Investing in the National Pension Scheme (NPS) is now going to be even more attractive. Pension fund regulator PFRDA is considering Minimum Fixed Return Scheme (MARS) under NPS.
The investors of this scheme will be given a minimum fixed return. Whereas at present, due to being linked to the market, fixed returns are not available in NPS. PFRDA in its draft proposal has said that it will appoint a consultant for the scheme. Also Read: Good news for taxpayers, Income Tax Department will refund the interest and late fees charged
According to the draft proposal of PFRDA, the new scheme will be different and special in many ways. In this, it can be offered more than the fixed return investment options available in the market. At the same time, for the convenience of investors, the facility of selling can also be available at any time with certain conditions. Experts say that on paying fixed interest, investors will compare it with fixed deposit i.e. FD. In this case, higher interest will have to be paid than that. Also Read: Personal Loan: Need personal loan for 5 years, lowest interest will have to be paid here
No clarification regarding tax exemption in the new scheme
On the other hand, payment for PFRD may become difficult in case of market downturn on offering higher interest. There is no clarification regarding tax exemption in the new scheme. Despite this, the existing tax exemption available on investment in NPS can be availed. At present, investment in NPS can avail tax exemption of Rs 1.50 lakh under Section 80C of Income Tax. Apart from this, an additional tax exemption of Rs 50,000 is also available on investment in NPS. Also Read: How much cash can be withdrawn from ATM, know the limit of top banks
How to get fixed returns of investors
The role of an advisor is crucial in the Minimum Fixed Return Scheme (MARS) of NPS being considered by PFRDA. The consultant has to assess how the assured returns can be given to the investors. On the basis of their suggestion, the registered pension fund scheme linked to PFRDA will be able to be introduced. Also read: Jan Dhan Yojana: Over 5 Crore Jan Dhan Accounts inactive, know why this happened and what will be the effect on you
Consideration of interest or other benefits
PFRDA is considering the new scheme whether fixed interest should be given on investment or other fixed benefits should be given. However, the main objective of this scheme is to give fixed returns to the investors in any case. The objective of PFRDA is to make this scheme attractive and convenient. The regulator has planned to appoint a consultant only after seeing the challenge of delivering the returns stipulated in the market-linked scheme. Also Read: Mid-Range Broadband Plans Of JioFiber, Airtel, BSNL
Investment period will be
PFRD is also considering fixing the period of investment in this scheme i.e. lock-in period. It could be two years or three years or any other time period. It will also have some conditions. Certain conditions may be placed for premature withdrawal. At the same time, on completion of the period, the amount will go directly to the bank account. Also read: Government Schemes: Secure the future by investing only Rs 42, this amount will be available in old
You will get a variety of facilities
Investors can be given a variety of options in this new scheme with fixed returns. According to the draft proposal of PFRDA, investors will also get the option to extend it on completion of the period. However, in that case it will be treated as a fresh investment and the lock-in period will start from that day. Apart from this, there will be an option to change any other scheme of NPS, but the same will be assessed like a new investment.
