Tax savings NPS hack
- 1396
- 14
-
- Last Comment
My questions are:
Can I invest around 40k per year , claim tax benefit and exit after 5 year with full money back? If I exit with full money, can I rejoin back NPS?
I think this is big hack/loop out of the lockin and get maximum tax benefit
Need expert advice..don't mind if I am wrong..just some idea came to my devil mind
- Sort By
The amount also includes the interest as well. What if it grows beyond the threshold? Need to keep a closer look.
This is possible but eps has five year minimum investment rule for tax free withdrawal, I think it should apply here as well(not sure).
Yes, you can rejoin nps anytime.
I also thought of this sometime ago, you are not alone with the devil mind.
NPS has equity/fixed component ... you should closely monitor to not breach 2.5L corpus ..
also only Employer contribution to NPS is giving tax benefit under new regime...
- On Employer’s contribution: Up to 10% of Basic & DA (no monetary ceiling) under 80CCD (2). This rebate is over and above 80 CCE limit of Rs. 1.50 lacs.
Thanks all .so we can use the hack right?
Considering we have to deposit manually every year, we can always monitor and keep it under 2.5L 
Btw somewhere I read rules are different for corporate and non-corporate employees , any idea on this?
NPS is only available for Employer's contribution. According to above screenshot, you can't investment manually yourself.
Source: https://cleartax.in/s/new-tax-regime-frequently-asked-questions
![Instamart JBL Tune Over-Ear Wireless headphones With Mic [location specific]](https://cdn1.desidime.com/topics/photos/1885498/medium/IM_OGimage.png?1732802145)
@third.i.financial.advisors