What are the income tax liability on switching fund from Tier 2 NPS to Tier 1 NPS.
DR SUNDEEP NIGAM (DOCTOR) (73 Points)
07 May 2021What are the income tax liability on switching fund from Tier 2 NPS to Tier 1 NPS.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 08 May 2021
You get 80c deductions and better interest rates under tier 1 account as compared to tier 2 account under NPS.
DR SUNDEEP NIGAM
(DOCTOR)
(73 Points)
Replied 08 May 2021
Will I have to pay capital tax gain on switching from tier 2 to tier 1 NPS
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 08 May 2021
I think tier 2 account is considered similar to a savings account and in general, interest is taxed. There is no express provision in IT act in this regard I think.
SUSHANT BIDAYE
(578 Points)
Replied 08 May 2021
DR SUNDEEP NIGAM
(DOCTOR)
(73 Points)
Replied 08 May 2021
Nps has informed me that switching is not shown in voluntary transaction statement hence no capital tax gain on it
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 08 May 2021
SUSHANT BIDAYE
(578 Points)
Replied 08 May 2021
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