What is the key advantage of NPS over other long-term tax-saving instruments like Public Provident Funds? Option: NPS allows for early withdrawals without penalties, unlike PPF, NPS offers guaranteed returns, while PPF returns are subject to market fluctuations, NPS returns are significantly higher due to partial equity allocation, NPS contributions are eligible for higher tax deductions compared to PPF

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What is the key advantage of NPS over other long-term tax-saving instruments like Public Provident Funds?

NPS allows for early withdrawals without penalties, unlike PPF

NPS offers guaranteed returns, while PPF returns are subject to market fluctuations

NPS returns are significantly higher due to partial equity allocation

NPS contributions are eligible for higher tax deductions compared to PPF

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What is a key advantage of a Public Provident Fund (PPF)?

"Investment amount, interest income, and withdrawals are tax-free"

"High liquidity and easy withdrawals"

"Guaranteed returns higher than market rates"

"Unlimited investment allowed"

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Which of the following is a key characteristic of Public Provident Fund (PPF) in India?

"It is a long-term savings scheme with a fixed tenure of 15 years, operated and guaranteed by the Central Government."

"Returns are market-linked and fluctuate based on the performance of underlying assets."

"It offers high liquidity, allowing investors to withdraw funds at any time without penalty."

"It is primarily designed for short-term investment goals, such as funding a vacation or making a down payment on a car."

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Which of the following is a benefit of using the NPS for salaried individuals?

Unlimited investment options.

Exemption from all taxes.

Guaranteed high returns.

Potential income tax deductions.

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Which Post Office scheme is considered a suitable retirement or pension plan?

Public Provident Fund Account

Kisan Vikas Patra Account

National Savings Time Deposit Account

National Savings Certificates (NSC)

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What is the main difference in tax treatment between NPS and ELSS?

Both offer tax deductions, but ELSS has a higher deduction limit

NPS offers no tax benefits, while ELSS does

Both offer tax deductions, but NPS has a higher deduction limit

ELSS offers tax deductions on contributions, while NPS does not