Save tax in the new regime with the corporate NPS

[@sujitnayak5713]

Very helpful and concise presentation. Cleared all my doubts about corporate NPS. Thanks😊

[@PramitKumarMadala]

But orgs are telling that they have not received communication from ITD and are capping employer contributions at just 10%

[@ETMONEY]

If that's the case, when they receive the communication, the deduction will be readjusted to 14% in the new tax regime.

[@anandvaidya67]

Excellent, Simple and useful video. Thank you Rajat.

[@ETMONEY]

Glad to know that you found this video helpful. Please don’t forget to share it with your friends and family.

[@Dude_Virus]

Could you please give more explanation on the 3 different types of contributions. In what scenarios will there be equal contribution by employer and employee ?

[@abhishekchatterG]

Beautiful presentation

[@ETMONEY]

Thanks for your encouraging words. Please help spread the message by sharing this video with your friends and family.

[@030783raja]

Sir Actually ET presentations are good. But always talk postive on the MF Schemes ( types) or Topics. Better to compare the availability of the tools and prefer . Hence the data of last 45 years of market is live. Hope ELSS is comparatively good. Corpus and Annuity will return in ELSS

[@abhiramachandra]

My firm allows me to modify the weightage foe Basic pay of salary within the total CTC. Do you think its a good option to increase this percentage weightage for Basic to make most for NPS ? Iam in highest tax slab.

[@rinav4all]

Can a company provide both EPF and Corporate NPS benefits? If my company deducts the full 10% of basic salary for EPF can we still opt in for corporate NPS. 7.5L limit is only for corporate NPS or for other deductions too under the old tax regime Also after exhausting the 80C and 80CCD 50K limit, does corporate NPS offer further decrease in taxable income?

[@jishnu18]

Yes but NPS is crap. Don't do it

[@ETMONEY]

1. Yes, a company can provide both the EPF and the corporate NPS. 2. You can opt for the corporate NPS even with your EPF deductions. 3. The Rs 7.5 lakh limit is for the aggregate contribution by the employer. It includes both the EPF and the NPS. 4. The deduction for the employer's contribution under Section 80CCD(2) is over and above the 80CCE limit of Rs 1.5 lakh and the 80CCD(1B) limit of Rs 50,000 in the old tax regime. Sections 80CCE and 80CCD(1B) don't provide tax relief in the new regime. Only Section 80CCD(2) is applicable for the new regime.

[@THEKING-sq2jd]

Cannot invest in such product without guaranteed fix pension. Invest in debt of flexi cap which can give much more return and assured prediction

[@ETMONEY]

When you invest in the corporate NPS, you save tax depending on your slab rate. This tax saved is similar to additional return. If you are in the highest tax slab, you are actually forgoing 30% of additional returns. Few investments can match this.

[@VishalGr-t8g]

Hi do you have any courses, i tried many websites I didn't find your name anywhere

[@ETMONEY]

We don't have any courses. You can check the video description for our other KZbin channels and social-media platforms to stay updated with insightful financial analyses.

[@RanjeetMD]

One very basic question : What happens to the corpus when employee turns 60 yrs old and market crashes just like March2020?

[@manavmishra9071]

That's where asset allocation comes in😂

[@mrinalpati4769]

With ur increasing the asset management moves ur assets to debt funds. So crash is taken care off, but negated.

[@chakrabortyraj]

You can opt for an extension; I guess it’s now available until 70-75 years old. However, the NPS needed many improvements, which were on track. But with the introduction of UPS, I believe they will now shelve it. I would not be surprised, as that’s how the current government (2014-24) has set a trend with finance. Of course, as long as the selective ONEs are not affected.

[@ETMONEY]

The NPS allows you to defer your withdrawal. If you have opted for the auto choice, around retirement, your equity exposure will anyways be minimal. You can also opt for systematic withdrawals to reduce the impact of a crash. Finally, you can shift your asset allocation as per your requirements when you near the retirement age.

[@RanjeetMD]

Thanks all... So, if someone is opting for NPS then their equity exposure should be less than 50% unless the age is less than 25 or best to leave it to auto choice.

[@chakrabortyraj]

It's now an useless product, as central govt has introduced UPS. Eg. 10% NPS investment is tax free in old regime. But in new regime it's 14%, that's before replacing NPS with UPS. Aab bhai, desh k IAS ko UPS/OPS mil jaye, aur wo NPS ka koi labh dene dega,aam aadmi ko???? If you still think yes.... I admire your innocence! NPS needed improvements, which were on track but will now stop, for reason stated above...

[@ETMONEY]

The UPS is available only for government employees. For the rest, the NPS still offers value. At the highest tax slab, it can save as much as 30% in outgo. Even for government employees, it depends on the individual whether UPS turns out to be better than the NPS or not.

[@sivarank]

@@ETMONEY is it 33% (30+3% surcharge) tax saving for > 50 Lakh salary guys ? NPS investment makes 49.25 % profit (100% captial money) if we compare it with Mutal fund (67% captial post 33% tax deduction). NPS performance is inline with Largecap MFs. If you are 40 year old with >50Lakh bracket. I feel, NPS make sense for you for my retirement plan.

[@KevinHamilton-p3s]

Deion Ranch

[@karthikeyanmurugan9836]

charges in NPS? can you explain

[@PranavKovale]

Man, you are explaining in the most boring way possible! I slept watching it.

[@ETMONEY]

That's a bit surprising as most of our viewers love our presentations. Still, you can try increasing the video speed to 1.25x or 1.5x. Hope that helps.