NPS Benefits: By investing in the National Pension System, you get many benefits along with retirement fund. We are giving you information about it.
There are many benefits of investing in the National Pension System. Let’s know about this.
National Pension System: The central government runs the National Pension System (NPS) scheme keeping in mind the retirement needs of the people. This is a social scheme under which the account holders get the benefit of pension fund as well as annuity. After opening an account under this scheme, you can contribute to it till the age of 60 years.
Under this scheme, account holders can withdraw 60% of the 100% amount as funds and the remaining 40% as annuity. In this way, under this scheme, account holders get the benefit of lump sum funds along with pension.
If you are thinking of investing in NPS, then apart from retirement fund, you get five more benefits. We are giving you information about this.
By investing in NPS, you can avail tax benefits. Investors are getting a rebate of Rs 1.50 lakh under this scheme under Income Tax section 80CCD (1). Apart from this, an additional tax rebate of Rs 50,000 is available under Income Tax section 80CCD (1B).
There is also a special benefit from the employer on investing in NPS. If a person invests 10% of his basic salary and DA in NPS, then you get the benefit of separate tax exemption from the employer. Whereas for government employees, this limit has been fixed at 14%.
NPS investors are allowed partial withdrawal before retirement. You can withdraw 25% of the total deposit amount from the NPS account. For this withdrawal, your NPS account must be at least 3 years old.
NPS offers many flexibilities to its subscribers. Account holders can contribute to the NPS fund anytime as per their need in a financial year. They can also choose and change their investment option themselves. Along with this, investors get the facility to handle their account online.
