Hi Sreekanth,
Many thanks for your informative blogs and clarifications. I have a question regarding LIC group super annutation fund scheme provided by my employer. I am currently working for an MNC falling in 20% income tax slab. My organisation is offering to contribute 15% of my basic component to this fund which would be paid as a monthly pension after termination of employment with this organisation. The interest rate will be decided by LIC. I did not get any information from LIC india. The monthly contribution is exempted from income tax apart from 80C.
Also I have reached the maximum limit for 80C. Could you please help me in understanding if it is a beneficial to contribute to this fund keeping in view my tax slab? I would be expecting returns similar EPF.
Thanks in advance.
Regards,
Satya
2 Answers
Hi,
After retirement age, you need to buy an Annuity product from LIC to get pension. The pension amount depends on the Annuity rate declared by them.
Yes, contributions to this fund is within maximum limit of Rs 1.5 lakh u/s 80c+80CCC put together.
Given a choice, may be NPS is a better option than this pension plan, though NPS itself is not a great investment choice..
Kindly read :
https://www.relakhs.com/national-pension-scheme-nps-drawbacks/
https://www.relakhs.com/transfer-epf-nps/
Please login or Register to submit your answer
Thanks Sreekanth.