Dive into the National Pension Scheme - from what is NPS, its benefits and tax advantages, to the NPS calculator. Learn about NPS deductions, account types, NPS online payments, and more.
21
Episodes
E01: National Pension Scheme A Deep Dive into Investing in Tomorrow
03 mins
The National Pension Scheme (NPS) is a voluntary retirement savings initiative in India. Benefits of NPS include tax savings, with deductions available up to Rs. 1.5 lakhs under Section 80C, and an additional Rs. 50,000 under Section 80CCD (1B). Managed by PFRDA, it allows citizens aged 18-60 years, including NRIs, to invest in diverse asset classes like equities and bonds. NPS aims to secure post-retirement income through disciplined contributions, low fund management fees, and regulatory oversight for transparency and investor protection. It serves as a tax-efficient, flexible option for long-term savings, ensuring financial security and peace of mind during retirement years.
E02: NPS Simplified Understanding Tier 1 and Tier 2 Accounts
03 mins
The NPS Tier 1 account serves as your primary pension account, mandatory for NPS subscribers. Contributions, including employer's, are invested based on chosen schemes. Withdrawals follow specific rules, with partial withdrawals possible under certain conditions. Tax benefits apply under sections 80C and 80CCD(1B). The NPS Tier 2 account offers flexibility, allowing withdrawals without restrictions, contingent on an active Tier 1 account. It requires minimal initial contribution and lacks annual maintenance charges. However, tax benefits are limited, except for Central Government employees. Both accounts offer investment choices tailored to risk profiles - active or auto-managed portfolios.
To open an NPS account, complete KYC via a POP, fill out the form, upload documents (PAN card, cheque, photo, signature), and make payment online. Contributions will be credited to your PRAN account within 2 days.
The National Pension Scheme calculator is a tool that estimates the pension wealth at retirement based on inputs like age, contribution amount, expected returns, and annuity purchase. It helps plan your retirement savings effectively.
An NPS Tier 1 account is the primary retirement account with restrictions on withdrawals, offering tax benefits. Whereas an NPS Tier 2 account is a voluntary savings account with flexible withdrawal options but no tax benefits unless you’re a Central Government employee.
NPS online payments can be made through the eNPS portal using net banking, debit/credit cards, or UPI. Register for online contributions and follow the payment process as guided on the portal.
NPS withdrawal rules include mandatory annuity purchase upon superannuation, optional lump sum withdrawals based on corpus size, premature exits after 5 years, and full corpus pay-out on subscriber's death.