Producer:  Priyanka Das Editor: Sujata Singh

National Pension Scheme: Benefits, Who Can Open and Other Details 

Debuting in 2004, the National Pension Scheme (NPS) was initially a government-only scheme, offering a secure retirement to government servants.

But in 2009, NPS opened its doors to everyone, inviting all Indians to take charge of their golden years.

It is an attempt towards a sustainable solution to the problem of providing adequate retirement income to every citizen of India.

Applicants should be between 18-70 years of age as on the date of submission of their application and should comply with KYC norms prescribed.

NPS offers tax benefits, market-linked returns, and a guaranteed pension, making it a valuable retirement planning option.

When subscribers reach retirement age and exit the NPS normally, they can choose to convert a portion of their accumulated pension wealth into a regular income stream by purchasing a life annuity from a PFRDA-approved life insurance company. 

Employed individuals contributing to NPS get double the tax advantage. They can claim deductions for both their own contributions and those made by their employer.

There is tax benefit even for the self-employed. They are eligible for tax deduction up to 10% of gross income under Sec 80 CCD (1) within the overall ceiling of Rs. 1.50 lakhs under Sec 80 CCE.

next

Sundar Pichai To Shantanu Narayen, 5 Highest-paid Indian CEOs