Tax savings NPS hack
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My questions are:
Can I invest around 40k per year , claim tax benefit and exit after 5 year with full money back? If I exit with full money, can I rejoin back NPS?
I think this is big hack/loop out of the lockin and get maximum tax benefit
Need expert advice..don't mind if I am wrong..just some idea came to my devil mind
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The amount also includes the interest as well. What if it grows beyond the threshold? Need to keep a closer look.
This is possible but eps has five year minimum investment rule for tax free withdrawal, I think it should apply here as well(not sure).
Yes, you can rejoin nps anytime.
I also thought of this sometime ago, you are not alone with the devil mind.
NPS has equity/fixed component ... you should closely monitor to not breach 2.5L corpus ..
also only Employer contribution to NPS is giving tax benefit under new regime...
- On Employer’s contribution: Up to 10% of Basic & DA (no monetary ceiling) under 80CCD (2). This rebate is over and above 80 CCE limit of Rs. 1.50 lacs.
Wouldn't you still pay tax on the interest when you exit after 5 years?
No
Thanks all .so we can use the hack right?
Considering we have to deposit manually every year, we can always monitor and keep it under 2.5L 
Btw somewhere I read rules are different for corporate and non-corporate employees , any idea on this?
NPS is only available for Employer's contribution. According to above screenshot, you can't investment manually yourself.
Source: https://cleartax.in/s/new-tax-regime-frequently-asked-questions
@third.i.financial.advisors