Pension savings withdrawal made 100% tax free in India
The government has made the NPSmore tax friendly by offering complete tax exemption to the 60% of the corpus that an investor can withdraw on maturity. When they retire, NPS investors have to use 40% of the corpus to buy an annuity and can withdraw the remaining 60% of the corpus. Till now, only 40% of this withdrawn amount was tax free, while the remaining 20% was taxed. Last week, the Union Cabinet approved a proposal to enhance the tax exemption limit to...