If you've still not made your tax investments for this fiscal year, here are two schemes that may offer you additional benefits over and above the limit of Rs 1,50,000 that is allowed under Section 80C of the Income Tax Act. National Pension System (NPS) and Atal Pension Yojana (APY) are two options for you. Both are government-run pension schemes with different features. While Atal Pension Yojana is focused on the unorganised sector, NPS is for all. Besides, entry age, contribution, returns and tax treatment are different too. Financial planners say one should make a decision based on the features that suit them best as per their personal needs. But to be able to make that decision, one has to learn the basic differences between pension schemes APY and NPS.
Here are 10 basic things to know about Atal Pension Yojana (APY) and National Pension System (NPS):
DifferencesAgeInvestment limitRs 210 per monthMinimum investment/contributionReturnsWho can subscribeFlexibilityType of accountPremature exitSimilaritiesEssential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
