Retirement planning is a very important part of life. Keeping this in mind, the Government of India has started the National Pension Scheme. Today we are going to provide you all the important information related to this scheme through this article. Such as what is National Pension Scheme?, its objective, benefits, features, eligibility, important documents, application process, helpline number etc.
National Pension Scheme 2023 :
NPS is a government investment scheme. Pension is given after retirement through this scheme. This scheme was started in 2004 for all government employees. From 2009, this scheme was opened for all categories of people. Any person can avail the benefits of this scheme by contributing to the pension account during his working life. He can withdraw some part of the deposited amount even before retirement and can use the remaining amount to get regular income after retirement.
Both employers and employees invest in the National Pension Scheme. Under NPS, employees can withdraw 60% of the total deposited amount at the time of retirement and the remaining 40% amount goes into the pension scheme.
Objective of National Pension Scheme :
The main objective of the National Pension Scheme is to provide pension amount to all investors after retirement. Through the National Pension Scheme, all citizens will remain self-reliant even after retirement and will not have to face financial problems. Under this scheme, investors can invest according to their financial condition. So that more and more people will be able to apply under this scheme. There are two types of accounts in the National Pension Scheme which are called Tier One and Tier Two. By investing in the National Pension Scheme, you will remain financially independent even after retirement.
Benefits and features of National Pension Scheme :
- The directors of this scheme will be provided pension after retirement.
- If you have invested in the purchase of Annuity then you will get complete tax exemption.
- Additional deduction up to 50000 can be claimed under section 80CCE.
- National Pension Scheme subscriber can claim tax deduction of 10% of gross income under section 80CCD(1) of the Income Tax Act within the total limit of Rs. This limit under Section 80 CCE is Rs 1.5 lakh.
- The minimum investment limit under the National Pension Scheme is 6000.
- If you are not able to invest the minimum limit under the National Pension Scheme, then your account will be frozen and you will have to pay a penalty of 100 to unfreeze the account.
- Earlier the contribution in this limit used to be 10 percent, but now the government has increased it from 10 percent to 14 percent.
- If the investor dies before 60 years of age, the pension amount will be given to the nominee.
- Directors of the National Pension Scheme are provided with a Permanent Retirement Account Number which is a 12 digit number. Investors can transact with this number.
- Not more than one account can be opened under the National Pension Scheme.
National Pension Scheme Eligibility Criteria :
- The applicant must be an Indian citizen.
- Both resident and nonresident citizens can invest in the scheme.
- To invest in the scheme, the age of the investor should be between 18 to 60 years.
- A citizen can join this scheme only after the KYC process.
Beneficiaries of NPS :
The following people can invest in this account:-
- central government employees
- state government employees
- private sector employees
- ordinary citizens
Sectors covered under National Pension Scheme :
- Central government
- state government
- all citizens of the country
- Benefits of National Pension Scheme for N.R.I. Can also be obtained by.
Benefits of investing in National Pension Scheme :
- Attractive market linked returns
- easily portable
- Professionally managed by experienced pension funds
- low cost benefits
- Tax breaks for individuals, employees and employers
- There is no need to open another NPS account on change of job or address.
- Net asset value is calculated daily by the department.