Are you a working person? If yes and you are also planning to invest in NPS, then know what are its benefits. It is seen many times that investors avoid investing in NPS due to lack of knowledge. So let’s know what are the five benefits of NPS?
5 advantages of NPS-
1- Invest at your convenience
The flexibility of investing in NPS is one of its attractions. There is no upper limit of investment in this i.e. you can invest in it as per your convenience. Whereas in other tax exemption options, the maximum investment limit is fixed.
2- More benefits to husband and wife
This is the only investment scheme in which both self-employed spouses can invest and avail separate tax exemptions. By investing in this, they get the benefit of depositing maximum amount and high interest. When he wants to stop working, he will have a huge amount.
3- Benefit to both the employee- employer
Under NPS, employees are benefited on the one hand by motivating them to invest and the amount deposited for it. In return, companies get tax exemption under section 36(1) of the Income Tax.
4- Maximum tax savings
Investment in NPS is eligible for tax exemption of up to Rs 50,000 under the Income Tax section. This exemption is in addition to the tax exemption of Rs 1.50 lakh available under section 80C of Income Tax. In this way, a total tax exemption of Rs 2 lakh is available on NPS.
5- Borrowers cannot confiscate NPS
Many times those who do their business have to face difficulties. In case of non-payment of loan due to loss, banks confiscate office, shop and house etc. But NPS is considered an individual investment, the amount of which cannot be forfeited by banks. In such a situation, NPS can be helpful in difficult times.
