The New Pension Scheme (NPS)…..Central Govt to consider some Tax benefit

It seems better to wait few more months before investing in the NPS.  Even though the fund management charges are less, it drags in the income tax regime where it your investment will be taxable at the end of maturity and more over it doesn’t offer any rebate under section 80 C.  Unlike retirement plan options, NPS doesn’t offer tax benefits under section 80 C and that’s the biggest drawback of the scheme. Currently, NPS falls under Exempt-Exempt-Tax (EET) system. This means that the maturity benefits that you will receive at the retirement stage will be taxable.

 

Like any other scheme, NPS has its own advantages and disadvantages. When compared to other retirement plan options such as employee provident fund (EPF), NPS is a better choice. Presently, EPF gives 8 per cent interest rate. But if you invest in NPS, you can gain better returns because of the equity portfolio of the scheme.

 

But compared to equity mutual funds, NPS has a major drawback: it restricts equity to 50 per cent. Even if the fund management charges are lower, mutual funds are recommended. "If one is voluntarily investing in NPS, then he/she might as well invest in the stocks or mutual funds (MF). It will give you better returns and you have control over your investments too."

 

The main reason: NPS loses its charm when it comes to flexibility and taxation. Firstly, in NPS your money is locked till your retirement age unlike MFs that do not have lock-in period except equity linked mutual funds. Moreover, annuity that you will receive at the age of 60 is taxable and so are the maturity benefits. Hence investors are better to wait for a while before hurrying to invest in it.

 

However if interested the following are the branches of South Indian bank in Kerala where you can apply for the PRAN (permanent retirement Account number) and make contributions subsequently.

 

Kesavadasapuram

Kollam

Alleppy – Main

Pathanamthitta

Thiruvalla

Kottayam Collectorate Junction

Kuravilangad

Palai

Kanjirappally

Changanacherry

Palarivattom

Alwaye

Kalamassery

Angamaly

Ernakulam Banerji Road

Vytila

Mavattupuzha

Thodupuzha

Perumbavoor

Thoppumpady

TCR Mission Quarters

Kodungallur

Irinjalakuda

Chalakudy

Ollukkara

Pudukkad

Wadakkanchery

Chavakkad

Kunnamkulam

Palakkad

Kozhikode -Mavoor Road

Kannur

Thalassery

Kalpatta

Valancherry

Kasargode

 Other centers in kerala are

 

1. Cochin CAMS Cams - Cochin 40/9633D Omega Tower,Veekshanam Road, Near International Hotel Pin 682035 Phone  04843234658 04842383830 s_femina@camsonline.com

2. Reliance Capital Ltd Reliance Capital Ltd,Cochin Holy Tuesday Shopping Mahal No44/22/14D,2^nd Floor Aluva Main Road,Kallore 682017 04843987345 - umesh.karunakaran@relianceada

3.  Axis Bank Ltd Axis Bank Ltd, Rajaji Road, Cochin 41/419, Ground Floor Chicago Plaza, Rajaji Road Ernakulam 682035 04842384271 - kochi.branchhead@axisbank.com

4. IL&FS Securities & Services Ltd IL&FS Securities & Services Ltd,Kochi 39/4967USNAZ Towers,3rd Floor Medical Trust Hospital Juntn. Pallimukku, M G Road 682016 04844028066 - kamala.kannan@issl.co.in

5. ICICI Bank ICICI Bank,Ernakulam(Cochi n) Emgee Square MG.Road Ernakulam - 682035 04844081222 - deepak.antony@icicibank.com

CPIM Needs To Be Cornerd In Their Anti-Social Policy In Lavlin Case

Kerala Governor R S Gavai Today gave sanction to the Central Bureau of Investigation (CBI) to prosecute Communist Party of India (Marxist) State Secretary Pinarayi Vijayan in connection with his involvement in the SNC Lavalin graft case. The Governor's sanction came despite the state government's recommendation not to give permission to prosecute Vijayan, holding that there was not enough evidence against the Marxist leader. The Government had made its recommendation based on the legal opinion of state Advocate General that there was no evidence to prosecute Vijayan. CBI Additional Superintendent of Police Premkumar received the letter from Governor, giving sanction to prosecute Vijayan, the Central agency sources said.

But the striking and disturbing fact here is how CPIM is trying to defend it. They are threatening to call hartal tomorrow and now clarifies it to be black day. However the statement that they are going to defend it politically as well as legally can now be understood as taking the rule of law in hand and disturbing the normal life of the society.

 

This is a matter that doest merit any explanations or discussions as no one in this country has proved that Mr. Vijay is a convict in the case, but he is simply asked to prove his innocence against the allegations raised by a crime enquiring agency in the country in the court of law that to based on the findings/order of statutory bodies like CAG and High court of Kerala. This is the normal procedure to be followed for any person in the union of India, in this situation.

 

The specialty of Mr. Vijay is beyond the understanding of the society of Kerala as well as the constitution of India. If CPIM and Mr. Vijay can prove the case to be politically motivated and doesn’t have any merit he will surely be declared as acquitted by the concerned court. As a state secretary of a party registered in the country of India and part of this democracy and also actively participating in parliamentary politics he is bound to go by the law of the land. If CPIM considers this constitutionals provisions and Court as bourgeoisie capitalist setup, it could very well organize class struggles to overturn the capitalist to form the socialist economy. As far as CPIM is considered these all are utopian and they are not at all communist in any of their actions and policies. Hence communit and marxist/Leninist ideolagies are byond there scope of action.

 

Hence the people of this country need to stand united against any anti people actions of the CPIM in this regard. No hartal or strike in this regard should be encouraged and it should be defeated. True peoples movements needs to be supported to avoid the rise and growth of such anti social activities.