NPS ( National Pension Scheme )

 



National Pension Scheme

Eligibility

  1. All employees of 
    1. Public Sector
    2. Private Sector
    3. Unorganized Sector
  2. Exception of Armed forces

Min - Max Contribution
  1. 6000/- per year or 500 monthly

Age 
  1. 18-60y 
  2. on maturity can be extended to 70y
Important Points
  1. Contributions are generally invested in market linked instruments such as debt and equity
  2. Returns
    1. Return are based on performance of these instruments.
    2. Expected to return 9-12% depending of Type of NPS account
  3. Tax Exemption
    1. NPS scheme covered on 80C - 1.5Lakh
    2. if employee is contributing then 10% of Basic is totally tax exempted. ***
  4. withdrawal
    1. After 3y - 25% of total contribution
    2. Premature withdrawal in case of emergency
  5. Security and Reliability
    1. Regulated by Pension fund regulatory and development authority of India ( PFRDA )
    2. Oversight helps in keeping things transparent and secure
  6. Types
    1. Type 1
    2. Type 2

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