New tax norm likely to make National Pension System more attractive

Only those who can invest in more liquid instruments and will not need the money before 60 should opt for it

Recently, the government announced that 60 per cent of the National Pension System (NPS) corpus that can be withdrawn at age 60 as lump sum will become tax free. Earlier, of the lump sum corpus, 40 per cent was tax free while 20 per cent was taxed. While this makes NPS more attractive, it is still not a product that everyone should opt for. Moreover, it is quite a complex product with a number of options. Investors should understand them well and make the right choices. 

EEE, but in a different way: NPS being made EEE (tax exempt at entry, investment,