NPS Scheme: If you do a private job, then old age tension will be necessary. Government servants get pension, but those working in the private sector do not get this facility. In such a situation, they have to secure their old age by investing. The government has started many schemes. In which pension can be availed after the age of 60 by making a safe investment. One such is the National Pension Scheme. Especially those who are doing private jobs. They should invest in NPS. Due to which one can easily get pension up to Rs 50 thousand per month in old age.
What is NPS?
National Pension System is a long term investment scheme. This scheme has been started keeping in mind the regular income after retirement. It is a contributory pension scheme run by the Centre. After investing in NPS, a huge retirement fund is available at the time of retirement. Along with this, monthly pension will be given.
Who can open an account in NPS?
You can open this account in your name or in the name of your partner. In NPS, after the age of 60 years, one gets the benefit of lumpsum tax and monthly pension.
How much and how to invest in NPS?
Investment in NPS can be made monthly or annually. You can start investing in NPS from Rs 1000 per month. Which can be run till the age of 70 years. After 60 years, 60% of the money can be withdrawn.
Take advantage of additional tax deductions on investments?
By investing in the National Pension System, you can get an additional tax deduction of up to Rs 50,000 annually. You can get tax benefits on savings made in NPS under section 80CD(1B) of the Income Tax Act in addition to section 80(c).
How much pension will be received on investing 5 thousand rupees?
If you are 30 years old. You invest Rs 5,000 per month in NPS account and continue for 30 years. If you get 10% return on that investment, then at the age of 60 you will have around Rs 1.12 crore in your NPS account. Under the rules, you will get Rs 45 lakh. Along with this, 45 thousand pension will also be given per month.
