The New Pension scheme (NPS) Which is Officially Known as the National Pension System and this is Government -backed retirement plan.
You can say Government -backed post retirement saving plan which will provide financial stability and provide financial security at the time of old age (post Retirement) Presently NPS is emerging as one of the most efficient long -term investment tolls for individuals who are planning their retirement in india.
While one wants to open National Pension System, then so many questions raise like
- What is the age criteria,
- How much amount need to deposit
- Where i can open
- How it will be managed and many more questions come to mind that all question answers we will provide in this article .
1) First of all who is eligible
So all Indians and NRI are also Eligible, and Age is 18 to 75 . Now, below the age of 18, Vatsalya yojna comes, which we will discuss in another article Here we will talk about National Pension System (NPS) for 18 to 75 (age extended from 70 )
2) Where can I open an NPS account?
Any bank in India, a post office online or offline, can open an Nps through the NPS link given all banks at their home page. if any one want to link for an open NPS account, then comment We will provide; otherwise you can go with your present bank where your savings account is operating.
3) What Documents are needed?
If you have a savings account with any bank or post office and want to open NPS with the same bank, then you have to submit onlythe NPS form, which you can download at the National Pension System (NPS) site and online open link via: https://enps.nsdl.com here you can open directly account .
If you have not any account with any bank and want to open with other bank then needed:
KYC documents:
- AADHAR CARD /PAN CARD
- Address Proof
- Bank Details
Minimum Amount need deposit
Since NPS have two type
- Tier 1 Account which is mandatory
Which is designed for retirement saving her indeed deposit 500 per transaction ,1000 annually .
- Tier- 2 account and this is Voluntary
This account like the Saving account here, has no tax benefits except for government employees.
4) Withdrawal Rules
This all in Tier 1 has a restriction on Withdrawal until the age of 60 but in tier 2 has no any restriction. But in Tier 1 has some flexibility to withdrawal like befor age of 60 lum sum 20% can withdrawal and 80% invest in pension plan. After 60 age 60% can withdraw and remaining 40% used for pension purposes.
5) Tax Benefits of NPS
80CCD(1) UPTO 150000/- TAX benefits
80CCD(1B) aDDITION 50000/- TAX Benifits
80CCD(2) Employer’s Contribution is tax-free.
CONCLUSION: Should you invest in NPS?
If you want to long term plan especially for Pension purposes and in early age then National Pension System (NPS) is the best option in other way tax benefits also good. Since this is market-based scheme so market benefits can get. So now you can decided how much and how to open NPS.
