Best way to transfer from credit card to savings account / cc limit enhancement trick

My understanding is this,
I have my salary savings of lets say 10000 (for which I have already paid income tax according to my slab rate lets say 10%). Now investing this in Tier-II NPS and keeping it for an year which accrues lets say 10% growth so now I want to withdraw total amount which is 11000, I will be taxed only for the gains on investment i.e. tax on 1000 rupees at 10% which is 100. In my bank account after withdrawal and tax I should see 10900. @rogerthat please correct if my understanding is wrong. @ramadesidime @kurk @indiansoul

I did a transaction in NPS tier-2 using the SBI payment gateway on 1st July but the amount is not credited. Upon asking NPS, they are saying the payment is pending from the gateway. SBI as usual is not responding on email or Twitter or phone. Any suggestions on what to do?

isse accha to paytm hai

Don’t ever go for loading / withdrawing NPS account with CC.. Capital gain tax are to be taxed for entire corpus

See the reply from so called tax experts.

https://www.moneylife.in/taxhelp/?url=article&....

But, why NPS is not giving clear cut information on the taxation of tier 2 withdrawal.

That’s b’coz you are considering only 10% bracket. Consider following 2 scenarios,
1. You don’t invest that 10000 Rs. anywhere. Won’t you pay tax on that Rs. 10000, if that has been generated in this financial year ? Similarly, if you invest that in NPS Tier 2 and get Rs. 11000 after 1 year. If you withdraw within 1 year, its STCG, so you will pay tax on entire Rs. 11,000 /-. If you withdraw after 1 year its LTCG which is taxed at Flat 10% for all brackets. Breakup as per your 10% slab – 10% on Rs. 10000 + 10% on Rs. 1000.
2. Now consider a person in 30% bracket. Breakup of LTCG would be – 30% on Rs. 10000 + 10% on Rs. 1000. (not 30%, bcoz, LTCG is taxed at 10%)

If you want tax free returns from NPS tier 2, you have to lock-in that money in Tier 2 for 3 years, then the whole amount would be Tax free. But, currently, thats possible only for Govt. employees.

Boss ! Am not related to this field. But understanding Tax implications of NPS Tier 2 is the most difficult. Even PFRDA/NPS trust does’t explain much about it. Hence, if you could explain in real detail about its Tax, may be of great help. However, I found this -

Here is a guide to help you understand the Tier-II account of NPS.
TAXABILITY.—-.
You can withdraw your money just like in bank fixed deposits or FDs. But there is a catch. Unlike the FD, where only the interest is taxed, here the entire amount withdrawn is taxable. Also, unlike debt funds, investments in corporate debt and government plans of the NPS do not enjoy the indexation benefit. It is a big disadvantage and can bring down returns substantially. So, think carefully before considering the Tier-II NPS account as an alternative to fixed deposits and debt funds.

Hemant Contractor, Chairman, Pension Fund Regulatory and Development Authority (PFRDA), says, “There is no tax exemption for the Tier-II account. The entire amount is taxed depending upon the tax status of the person. Debt mutual funds give the benefit of indexation, while gains from equity funds held for more than a year are taxed at 10%.”

“We have written to the CBDT (Central Board of Direct Taxes). We have requested for an exemption and that the NPS Tier-II account be treated like a mutual fund. Till it clarifies, the amount withdrawn will be considered taxable income,” he says.

All this makes NPS a lot less attractive. Consider this. NPS will yield Rs 3.37 lakh if a person invests Rs 50,000 a year at 15 per cent over five years. If the same person invests in an income fund, he will accumulate Rs 3.17 lakh, assuming 12 per cent returns. However, the NPS advantage fades away if we compare post-tax returns. The amount in hand would be Rs 2.35 lakh (assuming 30 per cent tax bracket) for NPS and Rs 3.15 lakh for the fund. This is because withdrawal from the Tier-II NPS account would be taxed as per the investor’s income tax slab, while capital gains from income funds would be taxed at 20 per cent with indexation. So, consider the tax aspects before being bowled over by the low cost of NPS.

Ideally, no body wants to waste time and money investing in NPS Tier 2 just for the sake of taxation purpose. But, the only attraction is, that it allows investment to be made by Credit Card, although with an Entry load of 0.9%+GST. And, those having Credit cards earning more than that reward points can actually use it freely to accomplish spends such as – monthly spend targets, Diwali spend targets, Yearly spend milestones to offset renewal fees. There is no harm in doing so. Also, again, i wish to say that NPS Tier 2 with Zero equity which some may call as “Ultrasafe NPS” may form a very very good portion of your Debt investment. Eg. Suppose, you are investing for a term of 7 years, say for Marriage or child’s education & your investment goal is 60% Equity + 40% Debt. Then, SIP amount of that 40% Debt could be invested in such Ultrasafe NPS with the added joy of earning Credit card reward points. And, if you have a card with 3.3% reward points like Infinia, Black, Ultimate – its a cherry on top !

Can anyone confirm the charges levied by karvy for payment through credit card. And if reward points available on karvy?

hi is the POP charges applicable on NPS tier 2? I have tier 1 account where there are additional POP charges from icici bank.

Which are the conditions in which we can withdraw in tier 2 and how much ?

@rogerthat Link in first post not working, which is best method to get started. sign up through bank mandatory or can be joined without one.

so, how is this game going nowadays.
which cards are allowing payment to PNS without getting triggered and still giving RPs?