NPS: National Pension Scheme (NPS) is a very special scheme of the government. Retirement people get a lot of benefit by investing in it. That is, it is like a stick of old age.
It was started in January 2004 for government employees but in 2009 it opened doors to all people to invest. Under this scheme, you can contribute regularly during your working age.
After this, on attaining the age of 60 years, he can withdraw a part of the accumulated amount at one go and from the remaining amount he can take it regularly as pension. Investing in this is beneficial in the long term and a huge amount can be earned.
Good news: Subscribers will be able to withdraw full money from NPS, these rules have changed
For this, you need to make regular contributions to Tier-1 and Tier-2 accounts. The option is given to the subscribers while opening an NPS account. They can either invest their money in different asset classes themselves or opt for auto choice option. Funds are allocated according to the age of the subscriber. Fund management is required while opening an account.
Central employees will now be able to choose between NPS and old pension scheme, but this is the condition
Tax benefits are available in Tier-1 account. For Tier-2 account, it is necessary to have Tier-1 account. It is mandatory to invest at least Rs 500 per month in Tier-1 account. Thus, it is necessary to invest Rs 6000 annually in a Tier-2 account.
Tax relief on Tier-1 account
Under NPS, under section 80CCD(1B) of the Income Tax Act, you get the benefit of tax exemption on investments up to Rs 50,000. NPS can also help you in additional tax savings if you have completed the limit up to Rs 1.5 lakh under section 80C. Withdrawal up to 60% of the amount on maturity of this scheme is not taxed.
Learn how to open NPS account sitting at home, this method is very easy
If you want to open an account in NPS, then you can open the account in 2 ways. Online and Offline. You can also change portfolio management company. He manages the pension fund.
National Pension System: PFRDA proposes to increase the age limit of entry in NPS from 65 to 70 years
In Auto Option, you fund manager selects the asset class as per the age of the investor. For an investor in the age group of 18-35, 50 per cent is invested in equities, 30 per cent in corporate bonds and 20 per cent in government securities. After 36 years the equity investment reduces by 2 per cent every year. On reaching 55 years, the equity will be reduced to only 10 per cent. In auto option, the investment in equities gets reduced till retirement.
Facebook us for social media updates (https://www.facebook.com/moneycontrolhindi/) and Twitter (.) to follow.