hello,
I have some amount in nps tier II, on the internet I read that no tax is cut if I transfer the money to tier I.
q1) if I keep the money in tier II for more than one financial year, and transfer the money from tier II to I , then will the tax be cut?
q2 how tax is cut on tier II.
yours sincerely
Transferring funds from NPS Tier II to Tier I is not taxable at the time of the transfer. Tier II itself does not offer tax benefits on contributions, and direct withdrawals from Tier II are typically taxed at your slab rate. Moving funds to Tier I effectively brings that money under the Tier I tax umbrella, which offers more favorable tax treatment upon final retirement exit.
CCI
Pro
CAclubindia
