Hey Friend,
You should be familiar with NPS Tier 2 in order to determine is tier 2 NPS taxable or not. This NPS account is not for retirement. Employees in the private sector and independent contractors can invest on any business day and withdraw their funds on any business day without incurring heavy exit fees or being locked in.
Calculate your EMI on a home loan with the help of the NoBroker EMI calculator. With NoBroker's house loan services, you may get a stress-free home loan disbursement.In a press conference on December 10th, 2018, Finance Minister Arun Jaitley disclosed that NPS Tier 2 Accounts for government employees would qualify for tax deductions under Section 80C up to Rs 1.5 lakh annually. The account would also have a three-year lock-in period.
Is NPS tier 2 taxable?For government employees, NPS Tier 2 qualifies for a tax credit under Section 80C. How the profits in NPS Tier 2 will be taxed for these employees is unclear. A three-year lock-in would also apply to the Tier 2 account. However, the government has not yet announced these tax regulations.
Employees in the private sector are not eligible for a tax deduction on their NPS Tier 2 contributions, and their Tier 2 gains are subject to slab-rate taxation.
Tax advantages are not available for NPS Tier 2. Taxes are imposed on NPS Tier 2 returns as well. For investments in NPS Tier 2, there will be a tax deduction available to government employees under Section 80C.
NPS tier 2 withdrawal tax:NPS Tier 2 has no lock-in restrictions. From the NPS Tier 2 account, you can withdraw money whenever you choose. For government workers investing in NPS Tier 2, there is a lock-in period of 3 years in order to qualify for a tax benefit. In December 2018, a press conference was held to announce this new provision for government workers, however, it has not yet been put into effect.
I would like to conclude here as I believe this suffices your query about is tier 2 NPS taxable or not.
Read More:
How to pay NPS online? How to generate IPIN for an NPS account? How to download the NPS payment receipt?
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Authors Of The Question
Is Tier 2 NPS Taxable?
ruchi
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2 Year
2022-08-30T17:23:28+00:00 2022-08-30T17:23:29+00:00Comment
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