Posted: 28 Dec 2015 06:03 AM PST

National Pension Scheme (NPS) Premature Withdrawal Rules

The recommendations of a house panel on the new pension scheme aims at making NPS investor friendly. It intends to help private workers in building a corpus of funds for retirement with reasonable returns.

Here are the basic rules for NPS premature withdrawal:

1) Upto 25% of the contribution to be allowed for partial withdrawal

2) Investors to be allowed three such withdrawals

3) Another important rules for NPS withdrawal is that the minimum contribution of 10 years is needed to be eligible for withdrawal facility

4) Gap of 5 years between withdrawals but not in case of critical illnesses

5) Withdrawal to be allowed for treatment of serious illnesses for the person investing in NPS, spouse and children

6) NPS withdrawals can also be made for higher education of children's and their marriage

7) For buying and constructing your first house, you can withdraw money from national pension scheme account

Withdrawal Conditions Under Tier – I & II Account

Although there are multiple options through which you can open an NPS account. The two most important ones are Tier – I & II. Following are the NPS withdrawal rules for these two accounts:

1) Tier-I Withdrawal: Prior to 2011, the lock-in period was till the age of 60. But after reviewing the pension fund regulatory and development authority bill, the committee agreed on enabling subscribers for premature withdrawals in the form of repayable advance but only under the condition that – the investor completes 15 years of service. Investor can also withdraw up to 50% of contribution after he/she serves minimum 25 years of service. Withdrawals can be done when faced with unforeseen life events such as critical illnesses and emergencies.

2) Tier-II Withdrawal: Unlimited withdrawals are permissible for an investor who invests in Tier-II account which acts like a normal savings bank account. However the process of withdrawing the money is tiresome. The agencies (called POP – Points of Presence) through which the requests is to be made are very less in numbers and everything is to be done offline resulting in investors to travel longer distances.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

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Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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You can write to us at

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Leave a missed Call on 94 8300 8300

Add On Credit Cards

Posted: 28 Dec 2015 05:41 AM PST

You enjoy the convenience of your credit card and love the rewards that they help you earn. How about providing the same to your loved ones?

Add – on cards are the easiest way to get them to enjoy the same credit privileges as you do without the hassle of applying for a new credit card. The best part is that getting an add – on card does not require additional income proofs or CIBIL scoring.

Just a simple KYC will suffice and there is almost nil rejection rate for an add – on card. Let me explain. An add – on card is essentially another instrument which uses the same credit line that is assigned to the primary card holder. The responsibility of making payment of the outstanding on the add – on card also lies with the primary card holder. Hence, there is no additional risk which the bank has to bear when issuing add on card.

The flip side of getting an add – on cards issued on your primary credit card is that your credit limit is now shared with all the cards which are linked, and any spends on one of those card also reduces your spending limit by that amount. However, that's a small inconvenience compared to the advantages offered by add – on cards. Most credit card issuers allow you to have multiple add – on card at no additional cost. So go ahead and get your family members to enjoy the same exclusive benefits that you do.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

Tax Benefits on LTA for 2016

Posted: 28 Dec 2015 04:46 AM PST

Tax Benefits on LTA

You can claim LTA benefits for yourself, husband, wife, parents and brother or sister. In case of husband or wife and child, benefits can be claimed only when they are not financially dependent on you whereas for claiming the benefits on parents and brother or sister they should be financially dependent on you.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds