NPS Corpus and Annuity Purchase
Summary
- The National Pension System (NPS) allows subscribers to buy an annuity with their accumulated corpus.
- Purchasing an annuity via NPS has a significant advantage: it is exempt from Goods and Services Tax (GST).
- The entire NPS corpus amount is utilized towards buying the pension, without any deduction for GST.
Key Facts
- · NPS allows annuity purchase
- · No GST on NPS annuity purchase
- · Entire NPS corpus used for pension
Why it matters
This information is crucial for individuals planning their retirement and looking to maximize their pension benefits through the NPS.
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