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If the present fund value is less than the total invested amount in NPS-Tier 1 account and we change the scheme preference(I mean change the % allocation in Scheme E,G,C) then do we have to book losses?

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No taxes are not applicable when you change the funds allocation.

Yes you are booking a notional loss in anticipation that reallocation will give you better profits compared to staying invested in same allocation. What will actually happen can't be predicted.

Yes that is correct, you redeem at current value and switch to new allocation.

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  • Kindly check again what am I asking. May 20, 2020 at 12:48
  • For example, total invested amount in NPS - 50,000. Current Fund Value - 45000. Now if we change the % allocation, then first units worth 45000 will be redeemed and then fresh investment will be made of 45000 only. Is this correct? May 20, 2020 at 17:30
  • But the NPS Customer Care Team is saying that if total invested amount in NPS - 50,000.Current Fund Value - 45000. and if we change the % allocation, then fresh investment will be made of 50,000 only and not of 45,000 Jun 1, 2020 at 21:29

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