Income Tax Act allows benefits under NPS as per the following sections:
A copy of the Annual Transaction Statement (Tier I) can be used as investment proof in order to avail tax benefits.
No. At present, a Subscriber cannot avail loan against NPS holdings.
There is no investment return guarantee. As per the present guidelines of Pension Fund Regulatory & Development Authority (PFRDA, the regulator for NPS), in case of government employees, contributions towards pension are invested by three Pension Fund Managers (PFMs), viz., LIC Pension Fund Limited, SBI Pension Funds Private Limited and UTI Retirement Solutions Limited as per the stipulated guidelines.
The returns under NPS are totally market based i.e. they are based on the NAV of the Pension Fund schemes. The benefits will entirely depend upon the amount contributed and the investment growth upto the point of exit from NPS.