NPS account holders will save tax along with retirement benefits, know complete details related to scheme

NPS is a scheme launched by the Government of India in the year 2004. Its purpose is to provide a stable and reliable income to people after retirement. This scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

NPS account holders: Everyone is worried about retirement life after the job. Some people plan for their retirement life from now and invest in a good fund. If you also want to secure your life after retirement, then National Pension Scheme i.e. NPS can be a better option for you. It is a long-term retirement investment scheme, which not only provides financial security after retirement, but also gives an opportunity for tax saving and market-linked growth.

What is a corporate NPS account?

The National Pension System (NPS) is a long-term retirement saving scheme. It was started by the Government of India. Under this scheme, any Indian citizen can deposit money regularly to meet his financial needs after retirement. Under this, an NPS account is opened, in which the person himself or his employer can contribute regularly. This contribution is made from the basic salary and DA (dearness allowance) of the employee.

Who can open an NPS account?

State government employees, central government employees, private sector employees and common citizens can also invest in NPS. Indian citizens between the ages of 18 and 70 are eligible to invest in this scheme. Non-Resident Indians (NRIs) can also invest in this scheme.

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What is the withdrawal limit?

There are 2 types of accounts in NPS. Tier 1 and Tier 2. In Tier 1, you cannot withdraw funds until the age of 60. Tier 2 NPS account is like a savings account. Meaning you can withdraw anytime as per your convenience.

How can I open an NPS account through my office?

  • If your office provides NPS facility, then you do not need to open NPS separately.
  • First of all, contact your HR department and tell them that you want to join NPS.
  • Take the Common Subscriber Registration Form (CSRF) from HR and enter your name, PAN card, Aadhaar card and bank details in it.
  • Submit the form to HR or DDO (Drawing & Disbursing Officer).
  • After this, a unique PRAN is issued on the basis of your documents. This PRAN i.e. Permanent Retirement Account Number will be sent to your mobile or email.
  • After getting the PRAN, give it to your office account or HR department.
  • After all this, every month a fixed amount from your salary will go to the NPS account.
  • The employer will also contribute his share to the NPS account.

Which of the old and new tax regimes benefits NPS more?

Old Tax Regime 80CCD (1): If you are employed, then up to 10% of your salary is exempted. This exemption is included in the total limit of 80C of Rs 1.5 lakh. If you are self-employed, up to 20% tax exemption is available on the income from NPS. You can also get an additional exemption of Rs 50,000 under 80CCD (1B)

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New Tax Regime: If you are in the new tax regime and have taken Corporate NPS, then tax exemption can be availed only under section 80CCD(2). Because the rebates available under 80CCD(1) or 80CCD(1B) are not valid in the new tax regime.

Where and how to check NPS balance?

  • There are many ways to check the money in NPS account. You can check the balance through NPS website, mobile application and missed call service.
  • If you want to check NPS balance from the website, then go to Protean-CRA portal.
  • Click on https://enps.nsdl.com/eNPS/NationalPensionSystem.html.
  • Now click on Login with PRAN.
  • Login with your PRAN number, user ID and password.
  • Fill captcha and other details. Then go to the holding statement.
  • You will see the money deposited in the NPS account.

How to check balance through mobile and missed call?

  • For this, install NPS mobile app in your mobile.
  • Login to the app. For this, PRAN number and password will be required.
  • After this, you have to click on holding amount. You will see the balance.
  • Similarly, if you want to check balance through missed call, then you have to go to profile setting option in this app and click on missed call alert.
  • Then you can check your NPS balance by giving a missed call to 18002100080.

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