National pension scheme (NPS scheme), NPS vatsalya
Additional Information
What is NPS & Benefits of NPS
The National Pension Scheme or NPS is a government-sponsored pension plan open to all Indian citizens. The main aim of the NPS Scheme is to provide social security to all Indian citizens and encourage savings. A unique Permanent Retirement Account Number (PRAN) is allotted to every subscriber in NPA. An individual invests in the NPS at regular intervals throughout their working period. After retirement, a fixed amount of the corpus fund can be withdrawn, and the remaining amount will be paid to them monthly as pension remuneration.
The benefits of the NPS Scheme are:
- The NPS scheme is regulated by the Central Government PFRDA or Pension Fund Regulatory and Development Authority.
- It is a voluntary scheme designed for the financial security of working-class citizens.
- The subscriber has the flexibility to choose or change the investment pattern, fund manager and the Point of Presence (POP).
- The National Pension System is a low-cost investment instrument.
- NPS account is portable, and the PRAN will remain the same irrespective of the change in location or employment.
- NPS account holders can transfer their Superannuation funds to their NPS Account without any tax liability.
- There are tax benefits under Section 80 C and 80 CCD for this NPS scheme.
NPS Eligibility Criteria
The general eligibility criteria for joining NPS are as follows:
- The applicant must be between 18 and 70 years at the time of application.
- The applicant must comply with the NPS norms.
- The applicant must not have a pre-existing NPS account.
The specific eligibility criteria for the specific sectors are as follows:
- All Citizen Model
- Applicants must be between 18 and 70 years of age on the application submission date.
- Applicant must comply with all the KYC norms prescribed in the Subscriber Registration Form.
