The National Pension Scheme (NPS) is a government-backed retirement savings initiative aimed at helping you secure your financial future. It is a voluntary, defined contribution scheme designed to provide regular income post-retirement. In this video, we’ll dive into the workings of NPS.
NPS is a scheme that is open to all Indian citizens, including NRIs, aged between 18 and 60 years. Contributions made to these accounts are invested in various asset classes like equities, corporate bonds, and government securities. They’re managed by professional fund managers appointed by the Pension Fund Regulatory and Development Authority (PFRDA).
We’ll also explore the scheme's tax benefits. Under Section 80C, contributions of up to Rs. 1.5 Lakhs are eligible for deductions. Additionally, an extra deduction of Rs. 50,000 can be claimed under Section 80CCD (1B). This could make NPS a tax-efficient savings option.
NPS might offer flexibility in choosing investment options and fund managers, along with low fund management fees. With strict regulatory oversight from PFRDA, the scheme could ensure transparency and investor protection. By building a retirement corpus, NPS could help provide financial security and peace of mind in your post-retirement years.
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