About NPS Account:
National Pension System (NPS) is an important milestone in the development of a sustainable and efficient defined contribution pension system in India.
Elite Wealth Ltd (EWL) is an PFRDA registered NPS Point of Presence (POPs) for accepting All citizen of India / Corporate Sector NPS applications and their contributions.
National Pension System is now available to all citizens of India with effect from May 1, 2009 and additional investment of Rs.50,000 will be eligible for tax deduction under section 80CCD (1B) of Income Tax Act, 1961.
The section 80CCD provides tax deductions for contribution to the pension schemes notified by Central Government, i.e., National Pension Scheme (NPS) & Atal Pension Yojana (APY). There are two parts or sub-sections of this section namely – section 80CCD(1) & section 80CCD(2).
Note: The maximum deduction as an aggregate of section 80C,80CCC & 80CCD(1) should not exceed Rs. 1,50,000 but after including section 80 CCD(1B), total deduction limit becomes Rs. 2,00,000.
1) Any citizen of India-resident or Non-resident, in the group of 18 to 65 years can open NPS account.
2) PRAN: Permanent Retirement Account Number (PRAN) will be issued to individuals registered under NPS.
3) Type of Accounts
Tier I – This is permanent retirement account in which subscriber contributes for accumulation of pension wealth.
Tier II – This is optional saving facility as an add-on to Tier I account. There are no restrictions on withdrawals.
4) Contribution Requirement:
|Particulars||Tier I||Tier II|
|Minimum Contribution at the time of account opening||Rs 500/-||Rs 1000/-|
|Minimum amount per contribution||Rs 500/-||Rs 250/-|
|Minimum Total contribution in Financial year||Rs 1000/-||–|
|Minimum frequency of contribution in Financial year||1||1|
5) Additional Tax Benefits:
Subscriber is allowed extra tax deduction in addition to the deduction allowed under Sec. 80CCD(1) for additional contribution in his NPS account subject to maximum of Rs. 50,000/- under Sec. 80CCD(1B) of IT Act, 1961.
6) Maturity: (On attending the Age of 65 years)
Minimum 40% of accumulated Fund should be used to purchase an annuity.
Maximum up to 60% of accumulated Fund can be withdrawn.
7) Partial Withdrawals:
One should be in NPS for at least 3 years and withdrawal can happen only against specific reasons.
Amount to be withdrawn should not exceed 25% of contribution made by subscriber.
Withdrawal will be allowed max 3 times during entire tenure with the gap of 5 years between 2 withdrawals.
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Just Investing in NPS
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How NPS Works?
- Under the NPS, an individual’s savings is pooled in a pension fund.
- These funds are invested by Pension Fund Regulatory and Development Authority (PFRDA) regulated professional fund managers as per the approved investment guidelines in the diversified portfolios comprising of government bonds, bills, corporate debentures and shares.
- These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.
|Photograph||Affix recent colour photograph|
|DOB proof||Please ensure DOB matches as indicated in the documents provided|
|ID proof||Self attested copy of PAN Card,|
|Address proof||Self attested Copy of Aadhar Card|
|Contribution cheque||In favour of “ Elite Wealth Ltd – Collection account NPS Trust”|
|Cheque Amount||Contribution amount + Charges|
How do you Open National Pension System (NPS) Account with Elite Wealth?
NPS Subscriber Registration Form
NPS Corporate Registration Form
Key Benefits of NPS:
Get additional tax benefit upto Rs 50,000 (Employee contribution) u/s 80CCD(1B) & 10% of Basic + DA (Employer contribution) u/s 80CCD(2) or over & above rupees 1.5lakh (u/s 80C).
Gets protection as it is regulated by PFRDA, which is backed by the Indian Government
You can switch between investment options once a year.
You can beat inflation by earning market linked returns if you opt for equity investment.
You can start saving as low as Rs 500 per transaction and Rs 1,000 per year.
No Upper Limit
You can plan your real retirement returns based on your requirements as there is no upper cap on investments in NPS.
The cost-adjusted returns of the NPS can be quite attractive in the long run
You get two options to choose from, either active choice or auto choice investment options in 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.