The National Pension Scheme (NPS) in India offers several benefits to its subscribers. NPS is a long term investment plan which act as a pension plan for organized and unorganized sector employees which is regulated by PFRDA.
There is no maximum investment amount in NPS but the minimum investment to open NPS account is Rs 500..Means anyone from the society can invest in NPS. Any Indian citizen age between 18-70 can opt for this scheme.You are also eligible to receive annual transaction statement in your registered email id under GO-GREEN initiative of protein Egov.
One can get tax deduction of Rs 1.5 Lac under section 80CCD AND 80CCE. An additional deduction of Rs 50,000 is eligible under section 80CCD and this is over 1.5 Lac.
Here are 10 major benefits of NPS:
Tax Redemption benefit: If you are a contributor in National Pension Scheme (NPS) in India then you are eligible for tax deduction under section 80C and 80CCD of Income Tax Act
Get Higher Returns: If you invest in NPS then you are eligible to get higher return then Fd and PPF .Over a time and history says NPS provides interest ranging from 9% to 12%.
Investors own decision matters: Investors can choose from various investment options and they can decide where to invest and investors can switch their fund.They are having this great facility
Transparency of investment: Nps investment is transparent as investors can track their fund and their growth easily on a daily basis. Moreover they can check the growth value of the invested funds.
Benefits in golden years: NPS helps to reduce retirement burden. Government encourages Indians to invest more in NPS as it helps in removing the burden of old age.
Portability: NPS can be ported to any location if you change your job too. It will remain active in any situation.
Lower Risk than before: NPS is a low risk investment option with higher return in old age .NPS ensures post retirement your wallet will be full with NPS returns.
Investment in EquityThe investment in NPS scheme is directly related to investment in equity. As it is invested in equity it has a high potential to provide higher return.
Flexibility in selection of fund: Investors can easily change their fund and the fund managers if they are not satisfied with the fund manager and fund they have selected..This flexibility helps the user to control over their investment amount.
Retirement benefits: NPS provides financial help in old age .Anyone from organized and unorganized sector employee can invest in NPS.It work as a pension plan. It excludes only armed forces.
