Iam a central govt. employee coming under NPS having tier I account and want to open Tier II account.I am 35 year old. I want to invest Rs.2000 per month in Tier II. I want to know whether this amount is taxable or not? Can I show this amount under tax exemption. What benefits will I get, if I do like this? After few years, if I want to withdraw some amount, that amount (withdrawn) will be taxable or not? Is ECS facility available for tier II. Please clarify my doubts.
1 Answers
There is no tax exemption available on Tier-II investment. Invested amount will be fully taxable and also the returns. It will be just like other investment products like open ended mutual funds, in which money can be deposited and withdrawn at any time.
ECS facility would be available for periodic automatic investments. Contact your bank for the same.
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