- National Pension Scheme – NPS - Pension for all
- PFRDA (Pension Fund Regulatory and Development Authority) is the governing body for NPS.
- Voluntary Pension for All – Citizens of India, Corporates and NRIs
- Take Time off this Tax Season to invest in NPS!
- Invest Early in NPS To Save in Lakhs This year!
- Early Investments in NPS Means More Compounded Returns
Invest in simple easy 4 steps now through DailyGong!
All you need to start with NPS Scheme
- AADHAR Card
- PAN Card
- Scanned copy of your signature
- Scanned copy of cancelled cheque
Fill
- Fill your personal details
Feed
- Feed your documents and investment preferences
Fund
- Fund your account
Portable Unique PRAN
- Regulated
- Transparent & Online Access
- Tax Efficient
- Low Cost
- Flexible Choices
- Attractive Returns
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Who can join NPS Scheme?
- Indian citizens, corporates and NRIs
- Age: 18-70 years
- Onboarding through Application & KYC submission
Fund Accumulation happens through
- Regular contributions by self and /or by employer
- Investments managed by professional Pension Funds
- NAV based returns
The exit points in NPS scheme areFeed
- Normal at 60 years or superannuation age
- Min. 40% Annuity purchase & Max. 60% lump-sum
- Premature with 80% Annuity purchase & 20% lump-sum
Benefits
01
Lowest Cost
Itʼs the worldʼs lowest cost pension scheme. Lowest Administrative charges and fund management fee as well.
02
Simple Process
All applicant has to do is to open an account with any one of the POPs being run through all Head Posts Offices across India and get a Permanent Retirement Account Number (PRAN).
03
Flexible Options
Applicant can choose his/her own investment option and Pension Fund or select Auto choice to get better returns.
04
Easily Portable
Through eNPS, applicant can contribute from anywhere in the country. The accountant can be shifted to any other sector like Government Sector, Corporate Model in case the subscriber gets the employment.
Types of NPS Account
Tier I Account of NPS has
- Tax benefits
- Restrictions on withdrawal
- Min. Contribution Rs. 500
- Min. Contribution per year Rs. 1000
- No limits on Contributions
Tier II Account of NPS - Optional Account with active Tier-I
- It has no tax benefits
- It has no unrestricted withdrawal
- The Min. Contribution to open Rs. 1000
- There are no Min. Contribution Rs. 250
- There are no limits on Contributions
Three flexible variations of contributions from employer and employee
- Equal contributions by employer and employee
- Unequal contribution by the employer and the employee
- Contribution from either the employer or the employee
Tax benefits
- Own contributions eligible for tax deduction u/s 80 CCD (1) up to 10% of basic + DA or up to 20% of Gross Income for self-employed within the overall ceiling of Rs. 1.50 Lacs under Sec. 80 CCE.
- Additional deduction allowed up to Rs. 50,000/- under sec. 80CCD 1(B)
Tax implications of Exit are
- Amount utilized for purchase of annuity on exit (minimum 40% mandatory) is not treated as income.
- Goods and Service Tax (currently 1.8%) is not applicable on annuity purchase.
- Maximum 60% of the total corpus at the time of exit is not treated as income.
- Partial Withdrawals are tax-exempt
Contributions made by the employer (up to 10% of Basic + DA)
- Employee gets tax deduction u/s 80 CCD (2) of IT in addition to the tax benefits available under Sec. 80 CCE up to Rs. 7.5 lacs.
- Allowed deduction for employer as a business expense u/s 36 (1) iv (a) of Income Tax Act 1961
