NPS or National Pension System is a retirement product in India. Are tax benefits the only reason to invest in NPS? In this video, we’ll thoroughly decode NPS, exploring its pros and cons and find the best retirement product.
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We’ll also navigate through Tier 1 and Tier 2 accounts in NPS, discussing their eligibility criteria, lock-in periods, contribution limits. We’ll explore the diverse investment options within NPS, including Active Choice and Auto Choice.
Additionally, we’ll examine the tax benefits of NPS under both old and new tax regimes, encompassing deductions under sections 80CCD(1), 80CCD(1B), and 80CCD(2). Furthermore, we’ll understand the rules regarding withdrawal of NPS corpus.
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About the Video
NPS or National pension system, a pension scheme regulated by PFRDA (Pension Fund Regulatory & Development Authority), launched by the Government of India in 2004. NPS can help save tax and also to get a regular pension after retirement. Learn about Tier 1 and Tier 2 accounts, their eligibility criteria, lock-in periods, minimum contributions, maximum limits and tax benefits. Explore the investment options under NPS, including Active Choice and Auto Choice, offered by top Pension Fund Managers like Birla Sunlife, HDFC, ICICI Prudential, and more. Understand the tax benefits of NPS under both old and new tax regimes, including tax deductions under sections 80CCD (1), 80CCD(1B), and 80CCD(2). Join us as we explore NPS, India’s top pension scheme, to boost your retirement planning and financial security. Don’t miss this chance to stay informed and ahead in your financial journey.
In this video, we’ll cover the following concepts:
1.What is NPS or national pension scheme?
2. How to invest in the national pension scheme?
3. What is PRAN number and what is the full form of PRAN?
4. What are the eligibility rules for opening a national pension scheme?
5. What are the tax benefits of the national pension scheme under Section 80C?
6. What are the charges involved in opening an NPS account?
7. What are the rules of withdrawal from NPS?
8. What is an Active choice and Auto choice under NPS?
9. Which is better Tier 1 vs Tier 2?
10. What is the total corpus we get on maturity from NPS?
11. What are the benefits of NPS for retirement planning?
12. What are the investment options available under NPS?
13. Which is the best retirement product?
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The National Pension System (NPS) is a voluntary pension scheme launched by the Indian government in 2004 to provide retirement income to its citizens. The scheme is regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA). As the name suggests, the NPS aims to secure the financial future of individuals by encouraging them to save for their retirement.
The NPS is open to all Indian citizens between the ages of 18 and 65. It allows individuals to contribute towards their pension fund during their working years and receive a regular pension income after retirement. The scheme offers two types of accounts – Tier I and Tier II. While Tier I is mandatory for all subscribers and restricts withdrawals until retirement, Tier II is a voluntary savings account that allows for withdrawals at any time.
One of the key features of the NPS is the flexibility it offers in terms of investment options. Subscribers can choose between three fund options – equity, corporate bonds, and government securities – based on their risk appetite and investment goals. Additionally, the NPS allows for partial withdrawals for specific purposes such as higher education, wedding expenses, or medical emergencies.
To make the NPS more attractive and accessible to investors, the government has introduced several reforms and incentives over the years. In the Union Budget of 2024, the Finance Minister announced the introduction of a new feature called Auto Choice for NPS subscribers. This feature will automatically allocate funds based on the subscriber’s age and risk profile, making it easier for individuals to manage their investments.
Moreover, the government has also increased the tax benefits associated with the NPS. Contributions made towards the NPS are eligible for a deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. Additionally, withdrawals from the NPS are tax-free up to 60% of the corpus, with the remaining 40% being mandated to be used to purchase an annuity.
As the NPS continues to evolve and adapt to the changing needs of individuals, it has become an essential tool for retirement planning in India. With its focus on long-term savings, investment flexibility, and tax benefits, the NPS offers a secure and sustainable way for individuals to build a retirement corpus. By understanding the various features and benefits of the NPS, individuals can make informed decisions about their retirement savings and secure a financially stable future.
Any idea to any one in case of early retirement can we Withdraw the money before 60 or we have to wait for 60 years
Sir govt employee 50% se jada Equity nhi kr skte kya..plz tell
I have question regarding tax liability of annuity amount which nominee will receive after death of contributor. So let say spouse get 30 lakh after husband death then does she need to pay tax on 30 Lakh?
I hope you will help and guide me since I could not find the answer anywhere! I resigned from my central govt. Job, after 7 years of service. My questions are: 1. When and How can I withdraw my deposit from my NPS account? Is it somehow related to approval (required) from the organization I resigned from, or do I have the autonomy? 2. If I do not wish to close this account, can I continue depositing? What would the process of withdrawal be, say, after 10 years?
Can we operate Tier 2 account just as like an ordinary mutual fund .Also What is taxation for Tier2 ?
Apka personal view kya hai sir NPS aur OPS ko lekar which one is better?
Complete guide. Taxation on systematic lumpsum withdrawal is not explained. I was expected this.
I am pvt Ltd employee, shall I open NPS account for tax saving at the age of 54?
NPS sabse bekar scheme hai
Sir please make a VDO on "impact of Lok Sabha election on stock market".
First of all thanks a lot for your valuable videos. Kindly inform me upto how much amount of investment in Tier-1 can be withdrawn 100% after attaining 60 yrs. of age? I already have contributed 1 lakh Rs., can I withdraw full amount with interest after attaining 60 yrs. of age?
Thank you for covering this topic in detail.
I have a query, If a subscriber dies before the age of 60, will their spouse get all the amount at once or they needs to wait till the policy matures. How will they get the amount in the same 60-40 format?
Hello sir
In nps system contribution is monthly or we can contribute at any time .
Please do video on tax saving related once again for not having home loans
After all no guaranteed pension in NPS, all these is beating about the bushes come to the point ur pension is volatile u may loose all ur money
In 2024 -25 assessment year new tax regime 50000k tax benefit in tier 2 account in nps.
Kya ye true hai
Tax benefits are shared between NPS and PF , so 2lac both combined