A Low Cost Investment Option With Tax Redemption Benefit
National Pension System (NPS) is an easy to access, low cost, flexible and portable retirement savings account which offers tax benefits under Section 80C and Section 80CCD.
National Pension Scheme or National Pension System is a Government of India initiative that offers retirement benefits to its subscribers. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and offers a robust yet transparent platform which allows an individual to plan their retirement in a cost effective way.
BENIFITS
1 Save Additional Tax:Contributions made are eligible for additional tax deduction benefit on voluntary contribution of up to Rs. 50,000/-under section 80CCD (1B), over and above Rs.1,50,000/-u/s 80C.
2 Assortment of Investment Options:The two investment models offered are AUTO or ACTIVE.
Based on user choice, the funds are allocated under Equity (E), Corporate Bonds (C), Government securities (G) and Alternate Assets (A)
3 Market Based ReturnsNPS returns are dependent on the asset allocation amongst Equity (E), Corporate Bonds (C), Government Securities (G) and Alternate Investment Funds (A) and are directly linked to the market as per the market returns
4 Long – Term Returns:NPS is a long-term investment plan which draws benefits based on compounding. There is a minimum lock in period of 10 years for All Citizens/Corporates
5Online Presence:Instant Access – Opening and accessing NPS account online is a hassle-free process. Subscriber can also transact through web or mobile-based app.
6 Flexible & Transparent:The subscriber has the flexibility to opt for an investment option, fund manager, annuity service provider and annuity option of choice. The returns are transparent in nature
Investing In NPS Made Simple,
Here’s How
How to Join NPS
- A subscriber can opt for either PAN or Adhaar based registration.
- PAN: You must have a ‘Permanent Account Number’ (PAN) or and an active Saving / Current account with any of the registered Banks (for KYC verification and initial payment through Internet Banking) to complete the registration process using this option.
- Initial contribution needs to be done through the Internet Banking facility of the bank selected by the subscriber during the online application process. The same bank will be responsible for KYC authentication in NPS.
Aadhaar: The user must have Aadhaar number with registered mobile number.