According to Anil Chopra’s report published in Financial Express, if you want to open an NPS account after the age of 60, then you must take care of some things related to it. It is to be known that the minimum lock-in period for joining NPS at this age will be 3 years. However, the entire corpus is not allowed to be withdrawn during this period.
Now senior citizens up to 70 years of age will also get the benefit of the National Pension Scheme being run by the government to get pension after retirement. Till now, the Pension Fund Regulatory and Development Authority (PFRDA) had raised the maximum age to join NPS from 60 years to 65 years. However, now it has been increased to 65-70 years.
In this, any Indian citizen, and Overseas Citizen of India (OCI) can join NPS and continue or suspend his NPS account till the age of 75 years. Online application for this can be done easily.
For online application in National Pension Scheme, you must have net banking facility and mobile number, email id and bank account. In the online application, you will also have to provide the details of Aadhar number and PAN card.
Apply like this
- To apply, first login to the NPS website
- Then go to the registration option,
- you will see the option of ‘Personal’, select it
- Enter the OTP received on your registered mobile number after selecting the Aadhaar option,
- while if you have opted for PAN card So you will have to give the information related to the bank, for this a fee of Rs 125 will be charged
- Now, by filling your personal information, get your acknowledgment number and click on submit
- Choose one from the list of eight pension funds,
- Here you will also have to select the mode of investment.
- Now You fill the details of your nominee,
- In the next step upload your signature along with your photograph and make the payment, after which you will receive the Permanent Retirement Account Number (PRAN)
- Download and print the form given here
- Sign this form by affixing your photograph and mail it to the CRA office within 90 days
Normal Withdrawal Period Three Years
If one joins NPS after 65 years of age, then he/she will have a minimum lock-in period of 3 years. However, the entire corpus is not allowed to be withdrawn during this period. The account holder can make tax free withdrawals only up to 60 per cent. The remaining 40 per cent will be paid by the life insurance company for compulsory pension or annuity. On the other hand, if it is equal to or less than Rs 5 lakh, the subscriber can choose to withdraw the entire deposited pension amount in a lump sum. In that case, 60% of the withdrawal amount will be treated as tax free and the remaining 40% will be added to the customer’s taxable income.
Tax benefits also for NPS subscribers
If one joins NPS after the age of 65 years, then he gets benefits at the higher annual rate than the subscribers who have attained the age of 55 years and also gets the benefit of tax exemption.
