National Pension Scheme (NPS) Details |
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| Eligibility | Individual 18- 65 years, |
| Interest rate | 8% to (Not fixed since it invested in equities) |
| How to open | Online |
| Investment Limit Per Year | 10% Basic DA, 20% of gross income self-employed (but up to 2 lakh deductible for tax) |
| Partial withdrawal | after 3 years 25% of your contributed amount.
3 times available till the age of 60, with 5 years interval |
| Premature closing | death, Superannuation, after 10 years 20% withdraw 80% for the pension. |
| Maturity / Lock-in Period | Till the age of 60 Years |
| Extension | 10 years |
| Tax Benefits | 60% lump sum no tax.
40% to insurance companies for pension pensions are taxable according to the slab. |
Superannuation benefit is a retirement benefit offered by the employer. In the case of NPS 10% employee Basic+DA.
How Open NPS account Online?
There is a Link between Bank and Government If search online to open PPF There will be HDFC webpage appears it asks open account through Karvy Portal.
However, we can open PPF at Nation Pension System website. Once you visit the Website. There is Upper right Corner, you will see “OPen NPS Acccount Online”. it will redirects you to https://enps.nsdl.com/
Click on That, Then again you have to click Nation pension system. After that 3 option appears
- Registration
- Contribution
- TIER II Activation.
Then click on Registration,
The process may be a bit long,
Part 2: NPS Registration form Filling
Enter Your PAN card Number,
Fill the Basic details,
Update bank details,
12 PRAN Number Generates (Permanent Retirement Account Number).
Upload KYC Details.
Once you completed the registration you can log in to make Payment,
CongratuTLATION: You just opened NPS account yourself, Now You can operate NPS account.
How to Pay NPS Amount by login at NPS trust?
Visit https://enps.nsdl.com/ CLick on Nation pension System.
Login with PRAN Number & password.
After Login, you can check balance, Pay the Payment,
Also, You can change the Fund manager Yearly Once, Asset Allocation Changing also Done at NPS Portal.
There is NPS Android app Available there you can download the App. and make payment easily. with the app, you can also open a TIER 2 Account.
How to check NPS balance Online?
1st Option: Download the NPS trust App. Login with PRAN Number & password to check your Balance details.
2nd way at NPS website: Visit the CRA NPS Portal, Login PRAN & Password. After login, you have the option to Check NPS balance.
What Is TIER II Account in NPS?
It’s Just like Mutual Fund account But There are No tax benefits.
You Can deposit & withdraw at any time.
Benefit: Operating all account at one place instead of Mutual fund accounts.
NPS Portal Features
- Download PRAN Card
- Update KYC
- Transfer NPS Account to another location.
Asset Allocation in NPS:
Active choice: This will choose by Subscription based on Equity & debt ratio. However, there is a limit of upto 75% for Equity.
Auto: Decision made by Fund manager according to Age & income of the subscriber.
TAX Benefits: EEE Status
- 1.5 lakh under section 80C
- 50,000 under 80CCD(1)*
- Withdrawal mount at retirement 60% is tax-free.
- Reaming 40% Amount invested Pension Plans. Hence the Yearly pension amount taxable.
Other pension schemes:
Post Office Monthly Income Schemes, (No tax benefit) LUmpsum Investment.
Senior Citizen Saving Scheme: 5 Years Term Lumsum Investment ex: if you invested 15 lakhs at Once, you will get 10,000* Monthly based on interest. eligibility after 60 years.