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,2nd 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
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