NATIONAL PENSION SCHEME

National Pension Scheme is a retirement savings scheme launched by Govt of India. It's a cost efficient, portable and flexible investment scheme.NPS now can be purchased online, which makes it easily accessable. Invest in NPS scheme and get additional tax benefit of Rs 50,000 under section 80CCD (1B) over and above the ceiling limit of Rs 1, 50,000 under section 80 C.

BENEFITS OF NPS

Save tax

Save tax upto Rs. 50000 over and above section 80 C limit.

Transparency

Investors can check value of investment anytime.

Cost Effective

Investment starts with minimum Rs. 500 and Rs. 1000 for Tier 1 and Tier 2 respectively.

Fund Flexibility

Investors choose from various asset classes like equity, corporate debt, government bonds,and also can switch from one option to another.

Portability

Every investor is identified with a unique and Permanent Retirement Account Number (PRAN), which can be transferred from one office to another.

Withdrawal on Maturity

On completion of 60 years of age, investor receives a lump sum payment, while 40% of the accumulated corpus is mandatorily used to purchase annuity for further monthly pension payments.

Partial Withdrawal

After completion of 10 years in the scheme, investor can withdraw upto 25% of the contribution for certain reasons.

TIER 1 & TIER 2 ACCOUNT

TIER 1

Is a Pension Account which is a non-withdrawal account. This account requires minimum contribution of Rs. 500 per financial year.

TIER 2

Is an Investment Account, which provides liquidity and option to withdraw entire investment. A minimum contribution of Rs. 1000 is required while opening the account and Rs. 250 per month. However, only investors with active Tier I account can subscribe for Tier 2 account.