google-site-verification=vHkxCxUiXBLDqf-n-dUzolENvVDcsUGS-2MvBavAuBA what is national pension scheme who can take benefits from it ~ Indian Railway Samachar | latest news india | money making ideas

what is national pension scheme who can take benefits from it

What is the National Pension Scheme? Who can take advantage of this, know the answer to every question related to it has been made compulsory for people working in the private sector since 2009.

What is the National Pension Scheme?
What is the National Pension Scheme? Who can take advantage of this, know the answer to every question related to it

The National Pension Scheme (NPS) is a retirement savings account, which was launched by the Indian government on 1 January 2004. This plan is mandatory for all government employees who join after this date. Since 2009, this scheme has also been opened for the people working in the private sector. Therefore, any employee working in the private sector who is between the ages of 18 to 60 years can be involved in the scheme with his own will.

How does the account open?
You can open a National Pension Scheme account in any government and private bank. Nearly all government and private banks of the country have been made POPs so any bank can open an account in the nearest branch of the bank. There are two types of accounts in this scheme. Tier 1 and Tier 2 Each Permanent Retirement Account Number Card is made available to every customer, which has a number of 12 digits. These numbers work in all transactions.

What is a Tier 1 account?
It is mandatory to open this account. Whatever amount you are accumulating in this account, not before the time, i.e. cannot be retired. You can withdraw money only when you leave the scheme.

What is a Tier 2 account?
Any Tier 1 account holder can open this account and can deposit and withdraw it with his desire. This account is not mandatory for everyone. It depends on your desire.

How much money has to be deposited?
At least 500 rupees in Tier 1 account and at least Rs. 1000 in Tier 2, while opening the account. There is no limit to the maximum amount. Similarly, in Tier 1 account, it is necessary to deposit at least Rs. 6000 in the entire year, then Rs. 2000 in Tier 2 account.

What do fund managers do?
The amount of money you deposit in the account is invested by PFRDA, registered pension fund manager. Some fund managers are ICICI Pru Pension Fund, LIC Pension Fund, SBI Pension Fund, Reliance Capital Pension Fund etc.

Does this benefit in income tax?
If you are a government employee then you can deposit any amount in NPS, but tax will be levied on up to 10% of the total income. Salary is from Basic Salary and DA. If you work in the private sector, you can deposit any amount in the NPS, but the tax benefit will be available only up to 10% of the total income. Total income means total income from all sources in the year (before deduction). There is another limit on 10% amount. The tax exemption 80 c, under the NPS, is within the limit of Rs 1 lakh.

How much pension will you get?
This is the most important question, how much will a pension get in NPS? It depends on the amount of money you purchase when you are 60 years old. The more you buy the annuity, the more money you get in pension every month. Annuity depends on how much your pension wealth is.

What will happen if the scheme is closed?
You have to take Life Annuity from the IRDA-accredited insurance company, at least 80 percent of the fund that is created before 60 years. This will get a pension every month. You can take 20 percent of the remaining cash. On death before 60, the nominee is given full pension wealth.

60 to 70 years
At least 40 percent of any pension you have made will have to take life annuity from the IRDA-approved insurance company. With this annuity, you will get a pension every month. The rest can be taken after a short period of time.

How much money will get on retirement?
Understand with an example that a person is 30 years old and he is investing 5,000 rupees per month in NPS. If you get an average return of 10% on the investment, then the retirement, that is, by the age of 60, the NPS fund will be around 14.14 lakh rupees. According to the rules of this scheme, at the time of retirement, you will have to spend at least 40% of the total funds to purchase an extra-plan plan. After this, you will get the remaining money as a lump sum amount. In this case, if you buy an annuity plan of 50 percent, you will get around 57 lakhs retirement time.

How much pension will you get?
As per the example, if your annuity plan returns 5 percent, then you get Rs 23,000 per month pension per month.
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