National Pension Scheme

Introduction:

National Pension System is a voluntary retirement scheme introduced by the central government. To promote a regular habit of savings in worklife and to get regular pension at the time of retirement.

Investment and Fund Management:

NPS money managed by professional fund managers. Currently various asset management companies like ICICI, HDFC, Kotak, Nippon etc.. managing an NPS fund. NPS fund invested in Equity shares, Government Bonds, Bill, Corporate Debentures. NPS subscribers get options where to invest their fund and which Asset Management Company handles your fund.

Retirement Benefit:

At the time of retirement age, NPS funds are used to purchase a life Annuity from Life insurance company and allow part of the accumulated fund to be withdrawn at the time of retirement.

NPS Features:

Two types of account you can allowed to open in NPS.

Tier I account and Tier II account.

Contribution in Tier I account upto 75% is not allowed to withdraw till the retirement age and Investment in Tier II account is allowed to withdraw any time as per need of the subscriber. Tier I account 25% is allowed to withdraw after 10 years and not exceeding 25% of contribution made by him or her.

NPS subscribers investing in Tier I accounts get tax benefit 80CCD(1B) upto 50000/-. This is additional tax benefit other then 1.5 Lakh 80CCE.

When any individual subscribe NPS then PRAN account is opened and you can manage your investment online through that.

Eligibility:

Person subscribing NPS must be A citizen of India, whether resident or non-resident and

Applicant should be between 18 – 60 years of age as on the date of submission of his/her application.