EET Taxation
Also known as: EET Structure, Exempt-Exempt-Taxable
Exempt-Exempt-Taxable: Tax structure where contributions and growth are exempt but withdrawals are taxable.
Detailed Explanation
EET (Exempt-Exempt-Taxable) is a taxation structure where contributions get tax deduction, growth within the instrument is tax-free, but withdrawals are taxable at applicable rates. NPS follows EET taxation - contributions get deduction under 80CCD(1B), growth is tax-free, but annuity income at retirement is taxable. This differs from EEE instruments like PPF where even withdrawals are tax-free.
Related Calculators
Related Terms
EEE Taxation
Exempt-Exempt-Exempt: Tax structure where contributions, growth, and withdrawals are all tax-free.
NPS
National Pension System - Government-sponsored retirement savings scheme with additional tax benefits.
Annuity
Regular income payments from an insurance product, typically used for retirement income.