Is there any other investment more tax-efficient with a shorter lock-in period?
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Hi
The tax benefits that NPS offers are amazing, but I am more concerned about the lock-in period. Also, we pay taxes on the pension plans that we receive.
So I am confused: should I invest in NPS or not? Or is there any better option to invest my money that gives me tax benefits for a shorter lock-in period ? -
NPS is a good option if you want tax benefits. However, if the lock-in period is your primary concern, there are alternative options available. ELSS mutual funds are a good option with only 3 years of lock-in period and also give you tax benefits under Section 80C.
PPF is another tax-saving choice with a 15-year lock-in period, but you can withdraw a partial amount after 5 years. So managing NPS with these schemes gives you flexibility with both tax savings and less lock-in period.