National Pension Scheme

Take Control of Your Retirement With NCP:-

Nation Pension System :-

National Pension System(NPS),also referred to as National Pension Scheme, is an easily accessible, low cost, tax efficient, flexible  and portable retirement savings account. NPS allows an employee/subscriber to contribute on fixed/irregular intervals and later,n retirement, receive the accumulated wealth depending on the contributions made and the income generated from them.

Low cost valuntary investment any time of the year.

Flexible investment options to choose from.

Online access 24/7 all 365 days in a year.

Regulated by PFRDA with transparent norms.

Portable even on switching employment/city.

NPS Pension Calculator :- 

Enter basic inputs to determine the amount of person wealth you will be able to generate and amount of tax tou will save.

Advantages of NPS :- 

  • Lowest changes for account opening,account maintance & transaction.
  • 24/7 access for all online requests and user friendly interface.
  • SMS and email alert facility from our CRA partner KFintech.
  • Immediate access to subscriber after PRAN generation.
  • Instant email statement on contribution transactions.
  • SSL certified payment gateway.

FAQ : Who can open an NPS Accounts?

  • Any Citizen of India.
  • Age between 18 years to 65 years.
  • Applicant should be KYC compliant.
  • Applicant should not have a pre-existing NPS Account.
  • Tax benefit with NPS under section 80ccc & section 80CCD

 Employer Contribution:-

Deducation up to 10% of salary (Basic + DA)from taxable income u/s 80 CCD(2). This is over and above the limits u/s 80 CCE.

 Employee Contribution:-

Deduction up to 10% of salary (Basic + DA) within overall celing Rs 1.5 Lac u/s 80 CCE.

 Voluntary Contribution:-

Deduction up to Rs 50,000 u/s 80 CCD (1B) from taxable income for additional contribution to NPS.

What documrnts would I need to register NPS?

  • For Account opening, you neeed to have : a valid KYC (as per SEBI guidelines).
  • A valid PAN  Number, Valid Address Proof, Mobile no. and email Id.
  • Upload your scanned photograph and signature in *.jpeg/*.jpg format having file size between 4KB-50KN.
  • Scan copy of Address Proof. Address should match with the CKYC records,else the Application will be rejected and subsriber will have to apply offline.
  • Upload the scanned copy of cancelled cheque or Bank Passbook in *jpeg/*.jpg/*.pdf format havinf file size 4KB-2MB.
  • Initial contribution needs to be done through the Internet Banking/Credit Card/Debit Card facility of any of Bank available in Payment Gateway.
  • This NPS registration process is CKYC Based, in case CKYC is not avalable.

 What happens when NPS matures ?

In the National Pension System, the maturity age is 60 years(retirement age). At the time of maturity, a subscriber can take upto 60% lump sum withdrawal that will be tax exemp. At least 40% of the corpus needs to be utilized in buying annuity, which i smandatory. The subscriber can also stop making contribution towards his/her pension fund at the time of maturity and defer the pension till the age of 70 years.

 What is National Pension Scheme(NPS):-

NPS (National Pension System) is a defined contribution based pension system launched by Government of India with the following objectives:

It is based a unique Permanent Retirement Account Number (PRAN) which is allotted to each subscriber upon joining NPS. The Government of India in executive powers adopted 'National Pension System' (NPS) based on defined contributions in respect of all new entrants to central government services, except the armed forces, with effect from 1st january 2004. Most of the stategovernments have since notified a similar pension system for their new entrants. NPS accumulates saving into subscribers PRA while he is working and use the accumulations at retirement to procure a pension for the rest of his life.

Salient Features:- NPS offer wide range ofbenfits to individuals, making it a unique investment opportunity. Some of the sailent features of NPS are.

Portable Account:- The NPS account (PRAN) remains the same irrespective of change of empyolment or geography.

Online Platform :- On joining NPS, each subscriber gets a login ID and password of NSDL system for accessing NPS details online.

More Offers :- It offers subscibers choce of service providers, funds, investment options,pension fund managers, annuity providers freedom to switch and annuity plans managers.

Prudently Regulated :-NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and perfomance review of fund managers by NPS Trust.

Multiple Options :- offers you a choice of funds, fund managers and investment options in National Pension System.

Transparent Investment Norms :-Investment Portfolio undre each asset class can be veiwed on respective pension fund manager's website.

Efficient Grivance Management :- Through CRA/PFRDA website, call center, email or postal mail.

Low Cost of Operations :-With 0.01% as fund management charge, NPS is one of the world's least cost investment options.

Tax Benifits Under NPS :- Individual subscriber (salaried as well as self emplyed) can avail of the tax banafits as mentioned below.

For salaried Individual :- Eligible for tax deduction of up to 10% of salary (Basic + Dearness Allowance) under section 80CCD (1) of Income Tax Act, 1961 within Rs.1.5lac limit under section 80CCE.

For Self Emplyoed :- Eligible for tax deduction of up to 10% of gross income section 80CCD(1) of Income Tax Act, 1961 with in Rs. 1.5lac limit under section 80CCE. As per the Finance Bill 2015, additional inverstment of the Rs. 50.000/- will be eligible for tax deduction under section 80CCD(1B) of Income Tax Act,1961. This benefit will be effective AY 2016-17.

Types of Account :- 

The NPS system offer 2 types of account.

Tier l Account

It is also known as pension account. Withdrawal from this account is till the subscriber attains the ade 60 years. Minimum yearly contribution requirement in this account is Rs. 1000.

Tier ll Account

It is a normal investment account. Withdrawal from this account can be done as per the need of the subcriber. Minimun yearly contribution requirement in this account is Rs. 250, however on 31st March of each year, total value of units account should be equal to or more than Rs.2,000.

An active Tier I mandatory for opening Tier ll account. Tier ll account can be opened along with Tier l account or at any time after Tier l account opening.

Asset Allocation Options 

NPS gives subscribers the option to invest according to their choice and risk appetite among three funds. There aset allocation optins under NPS are.

Equity (Asset Class E)

Corporate Bonds (Assect Class C)

Extending old ade security (Coverrage To All Citizens)

Investment Option :-Depending on the expertise on taking call on right asscet mix, subscribers have 2 investment option under NPS.

Active Choice :- Under this option, subscriber can select the asset allocation among eguity, corporate bonds and government securities as per his/her choice.

Auto Choice :- Under this option,fraction of funds invested across three asset classes is determined by a pro-defined portfolio which will be based on the age of the subscriber. This is also known as life cycle fund option.

Investment pattern under auto choice is as per the below table.

 Withdrawal BeforeThe Age 60 Years :-

  • Up to 20% of corpus can be withdrawn in lump sum.
  • Minimum 80% of the corpus needs to be invested in annuity.

 Withdrawal On Attaining The Age 60 years :-

  • Up to 60% of corpus can be withdrawn in lump sum.
  • *Minimun 40% of the corpus needs to be invested in annuity.