NPS: Does it make sense to invest?
NPS: National Pension Scheme Does it make sense to invest Rs 50,000 in the NPS to get additional tax deduction? It doesn't as equity mutual funds can get you more... An additional tax deduction of R 50,000, introduced by the finance minister in the last budget, under Section 80CCD(1B) on the contributions to the National Pension Scheme (NPS) is a major draw for some investors. This was over and above R 1.5 lakh tax deduction permitted under Section 80C of the Income Tax Act. However, many investors can't make up their mind whether they should go ahead with the investment because of their lack of familiarity with the NPS and its rather rigid structure. Many of them are wondering whether it is better to let go of the tax benefit and invest the money in an equity mutual fund. The strategy is worth a serious consideration as it gives an investor full control over his investment and the accumulated corpus. It is also tax-efficient. The NPS is open to all the India