NPS Benefits: By investing in the National Pension System, you get many benefits along with retirement fund. We are giving you information about it.
NPS Benefits: 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 i.e. NPS scheme keeping in mind the retirement needs of the people. This is a social scheme under which 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 percent of the 100 percent amount as fund and the remaining 40 percent as annuity. In such a situation, under this scheme, account holders get the benefit of lump sum fund along with pension.
If you are thinking of investing in NPS, then apart from retirement fund, there are five other types of benefits in it. We are giving you information about it.
By investing in NPS, you can avail tax benefits. Under this scheme, investors are getting a rebate of Rs 1.50 lakh under Income Tax Section 80CCD (1). Apart from this, an additional tax exemption of Rs 50,000 is being given under Income Tax Section 80CCD (1B).
Investment in NPS also provides special benefits from the employer. If a person invests 10 percent of his basic salary and DA in NPS, then in such a case you get the benefit of separate tax exemption from the employer. At the same time, this limit has been fixed at 14 percent for government employees.
NPS investors are allowed partial withdrawal before retirement. You can withdraw 25 percent of the total deposit amount from the NPS account. For this withdrawal, your NPS account must be at least 3 years old.
NPS provides many types of flexibility to its subscribers. Account holders can contribute to the NPS fund anytime according to their need in a financial year. He can also choose and change his investment option himself. Along with this, investors get the facility to handle their account online.
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