I have heard that ELSS is not valid for tax savings from this year onwards. If this is true, then what is the best tax saving option? And which is better between the NPS and Ulip pension?
— Rajat Bhatia
You are wrong. Equity Linked Savings Schemes (ELSSs) are very much valid as tax saving instruments under Section 80C in the current financial year. Do note that they have a three-year lock-in period. It probably will no longer be valid from next year onwards.
The New Pension Scheme (NPS) is a low cost pension plan which currently offers four options to invest in. The options vary depending on the investors’ risk profile: high equity exposure, only fixed income investments, a mix of the two and an automatic allocation that decides on asset allocation depending on the investor’s age. Despite such options, invest in an NPS with caution; there is little history when it comes to fund performance and there are costs involved if one were to exit the scheme before the vesting age of 60.
Insurers have not launched a ULIP pension scheme this year.