National Pension System

National Pension System is a defined contribution based pension scheme initiated by government of India to provide old age security and pension requirement of all citizen of India. The NPS was rolled out for all citizens of India on May 01, 2009.

NPS Provide dual benefits:-

  1. Retirement benefit (Pension during your Retirement Life)
  2. Additional Tax Benefits – Contribution by employees under NPS assumes even higher significance as theadditional tax benefit under Sec 80CCD (1B) of the IT Act for investments up to Rs. 50,000/- is available exclusively under NPS.

Is NPS beneficial for HNI’s as well?

Yes, its best plan for those individuals (HNI’s) who are into @30% tax bracket. The additional deduction is a big incentive to investors. Someone in the 30% tax bracket (earning over Rs 20 lacs per annum) will be able to save up to Rs 15,450 in tax.

How is an NPS different from an invest in any other Life Pension plan or a mutual fund pension scheme

  1. Low Cost Investment – Cost effective mode of planning for one`s retirement.
  2. NPS is regulated by PFRDA with transparent investment norms and regular monitoring and performance review of Fund Manager by NPS trust.
  3. It is Portable – You can operate your account from anywhere in the country, even if you change your city, job or your Pension Fund Manager.
  4. Online Platform – On joining NPS, each Subscriber gets log in ID and password of NSDL system for accessing NPS details online.