I am getting regular pension presently around Rs.6.5 lacs annually and hence continuing the pension plus schemes for availing 80c benefits and getting it back monthly as pension is not beneficial. What is my loss if I discontinue further insts of pension plus schemes
Ans: If you discontinue further investments in the pension plus schemes, you will not be able to claim the tax benefits under section 80C for those investments. The maximum deduction allowed under section 80C is Rs. 1.5 lakh per financial year, which includes investments in various instruments such as PPF, ELSS, life insurance premiums, etc.
If you have already invested the maximum amount of Rs. 1.5 lakh in other eligible investments under section 80C, then discontinuing the pension plus schemes will not result in any loss of tax benefits. However, if you have not utilized the full deduction limit of Rs. 1.5 lakh, then discontinuing the pension plus schemes may result in a loss of tax benefits for the remaining amount.
Additionally, you will also miss out on the pension benefits that would have accrued had you continued investing in the pension plus schemes. Therefore, before deciding to discontinue the pension plus schemes, you should consider the long-term benefits of the pension plan, such as regular income in retirement, along with the tax benefits.