How to invest in best Tax Saving options

I am going to complete my age 60 years in Feb 2016 and working in a Private company and want to invest INR 50,000/- from my own contribution to save tax of INR 15,000/- 1)The NPS is applicable for age between 18 to 55 years or up to 60 years. 2) Lump sum withdrawal after maturity will be tax-free or taxable. 3) Which is the best Fund Manager till date?

Jun 1, 2015 by Janardan Prasad, Mumbai  |   Taxation

Yes, you can contribute Rs. 50,000 during the current FY (But before attaining age 60) to avail the tax benefit. However, you will not be able to contribute anything after that as you are attaining the age of 60 in Feb 2016.

Minimum 40% of the total corpus should be used for buying annuity. Remember the annuity and the withdrawals are taxable. However, if you wish you can defer the lumpsum withdrawal till age 70. This will help the corpus grow.

In our view, since you will be attaining the age of 60 after a few months, it is not an attractive proposition for you excepting that you will be saving tax once only on the contribution of Rs. 50,000. We have attached a detailed NPS Document for you to check the complete facts.

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