How to open an NPS account and understand its key features
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The document discusses the National Pension Scheme (NPS) in India. NPS is a social security program open to both public and private sector employees between 18-60 years old, except armed forces personnel. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). To open an NPS account, one can visit a point of presence like a bank or post office either offline or online. A Permanent Retirement Account Number (PRAN) is issued upon registration. There are two tiers of accounts - Tier 1 offers tax benefits and matures at age 60, while Tier 2 is voluntary and does not provide tax benefits. The document outlines the fund managers in the government and non
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How to open an NPS account and understand its key features
- 1. 1 ADD A FOOTER SUBMITTED BY: SINCHANA M S 1ST M.COM G.F.G.C.W.HOLENARSIPURA SUBMITTED TO : MR.SUNDAR B N ASST.PROFESSOR AND COURSE CO-ORDINATOR G.F.G.C.W.HOLENARSIPURA G.F.G.C.W FOR WOMEN HOLENARSIPURA
- 3. What is NPS • The National Pension Scheme is a social security initiative by the Central Government. This pension program is open to employees from the public, private and even the unorganized sectors except those from the armed forces. • Age limit 18 to 60 years 3
- 4. NPS Regulated by ? • NPS is Regulated by (PFRDA – Pension Fund Regulatory and Development Authority) • Example • Bank – RBI • Stock Market – SEBI 4
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- 6. HOW TO OPEN NPS ACCOUNT 6 OFLINE – POP (point of presence) Nationalized Bank ,private sector Bank, Post Office ONLINE- WWW.ENPS.NSDL.COM AADHAAR CARD link to mobile number , Signature,
- 10. 10 ADD A FOOTER
- 11. PRAN CARD 11 • The PRAN or Permanent Retirement Account Number is a unique 12 digit number that identifies those individuals who have registered themselves under the National Pension Scheme (NPS). PRAN card registration is mandatory for Central and State Government employee
- 12. TYPES OF ACCOUNT 12 TIER-1 & TIER-2 • TIER-1 You need to deposit at least Rs 1,000 per annum to keep the account active. The NPS Tier 1 account matures at the age of 60 and you can extend it till the age of 70. NPS Tier 1 is eligible for tax deduction on contributions up to Rs 1.5 lakh under Section 80 C and an additional Rs 50,000 under Section 80 CCD (1B) of the Income Tax Act, 1961
- 13. TIER-2 13 The NPS Tier II is a voluntary account that can be opened only if you have a Tier I account. When opening an NPS Tier II account, you are required to make a minimum contributionof Rs 1,000 • If the NPS corpus is less than Rs. 2,00,000, then the individual can withdraw the entire amount as lumpsum • National Pension Scheme Tier 2 doesn't have or offer any tax benefits • In case of premature death of the subscriber, the entire NPS corpus amount will be given to the nominee • A government employee choosing voluntary retirement must use at least 80% of the NPS corpus to purchase annuities under the current NPS withdrawal rules.
- 14. Fund manager 14 GOVERNAMENT SECTOR PENSION FUND MANAGER 1. SBI 2. LIC 3. UTI NON-GOVERNAMENT SECTOR PENSION FUND MANAGER 1. KOTAK BANK 2. HDFC BANK 3. RELIANCE 4. BIRLA SUN LIFE
- 15. advantages OF NPS 15 Higer long term retunes Safe Tax benefits in Tier-1 Disadvantages of NPS No withdrawals till maturity Partial tax exemption
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- 17. THANK YOU 17