VP FinDesk One Stop Solution for all your Investment Needs
National Pension Scheme (NPS)
National Pension Scheme (NPS), a government-sponsored pension scheme, was launched in January 2004 for government employees. It was opened to all sections in 2009. A subscriber can contribute regularly in a pension account during his/her working life, withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
The NPS scheme allows the investors to choose their fund manager from 7 different fund managers. They can also choose the mode (Active or Auto mode).
The 60% of the total can be withdrawn and the remaining can be invested in any annuity plans after 60 years. We can also withdraw up to 25% of the amount after paying for 3 complete years for any emergency purposes.
NPS allows you to choose from few asset classes such as equity, corporate bonds, government securities, and alternate funds which minimizes the risk.
The NPS scheme enables a tax benefit of up to 2 Lakhs. The tax benefits in the NPS scheme are under three provisions. They are 80CCD(1), 80CCD(1B) and 80CCD(2). On retirement, every individual will receive a tax-free lump sum withdrawal of up to 60% of the total.
In the NPS scheme, one can contribute a Min of Rs. 1000/- every financial year. The Minimum contribution required at the time of account opening is Rs. 500/-.
Every transaction in the NPS can be carried out online which makes the scheme hassle-free. It also allows us to check fund, NAV and contribution status through the platform.
