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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Considered a significant tool for long-term retirement planning, the NPS scheme is regulated by PFRDA and established through an Act of Parliament. It can be voluntarily subscribed by any citizen of the country (resident/non-resident/overseas citizen), between 18 and 70 years of age.
The retirement benefit plan also offers multiple tax benefits under various sections of the Income Tax Act of 1961.
Tax advantages under NPS investments
- Individual tax benefits
Any individual subscriber of the scheme is eligible to claim tax benefits under Section 80CCD(1). However, this is within the overall ceiling of ₹1.5 lakh under Section 80 CCE.
Further, there are several tax benefits to the NPS subscribers under Section 80CCD(1B), which provides an additional deduction for investments up to ₹50,000 in NPS (Tier I account). It must be noted that this amount is over and above the deductions of ₹1.5 lakh available under Section 80C of the Income Tax Act, 1961.
- Corporate sector
Under Section 80CCD(2) of the I-T Act, additional tax benefits are available to the subscribers in the corporate sector. The employer’s NPS contribution for the employees – up to 10% of salary (including both basic + DA) – is deductible from the taxable income up to ₹7.5 lakh.
Also, the employer’s contribution towards NPS is deductible as ‘Business Expense’ from the Profit and Loss Account
Besides the tax benefits available under Section 80CCD, there are several others available under the National Pension Scheme:
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- Partial withdrawal
Subscribers are allowed to partially withdraw from the NPS Tier I account for specific reasons. The amount that they receive from the partial withdrawal is completely exempted from tax under Section 10(12B) of the Income Tax Act.
- Annuity purchase
The amount that is invested towards the purchase of an annuity is also fully exempt from tax. However, it must be noted that the annuity income that subscribers receive in the subsequent years is subject to Income Tax.
- Lump sum withdrawal
For all the subscribers, withdrawal in a lump sum of up to 60% on maturity is exempted from tax.
(Edited by : Sudarsanan Mani)
