NPS (NATIONAL PENSION SYSTEM)
THE NATIONAL PENSION SYSTEM (NPS) IS A DEFINED-CONTRIBUTION PENSION SYSTEM IN INDIA REGULATED BY THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PFRDA) WHICH IS UNDER THE JURISDICTION OF THE MINISTRY OF FINANCE OF THE GOVERNMENT OF INDIA. NATIONAL PENSION SYSTEM TRUST (NPS TRUST) WAS ESTABLISHED BY PFRDA AS PER THE PROVISIONS OF THE INDIAN TRUSTS ACT OF 1882 TO TAKE CARE OF THE ASSETS AND FUNDS UNDER THIS SCHEME FOR THE BEST INTEREST OF THE SUBSCRIBER
NPS Application Fees 99/- Rs without premium
DOCUMENTS REQUIRED
TO OPEN A NATIONAL PENSION SYSTEM (NPS) ACCOUNT, YOU’LL NEED TO PROVIDE THE FOLLOWING DOCUMENTS:
- PROOF OF IDENTITY: AADHAAR, PAN CARD, PASSPORT, OR OTHER GOVERNMENT-ISSUED ID
- ADDRESS PROOF: UTILITY BILLS, AADHAAR CARD, OR OTHER VALID ADDRESS PROOF
- PHOTOGRAPH: RECENT PASSPORT SIZE PHOTO
- BANK ACCOUNT: CANCELLED CHEQUE OR BANK STATEMENT
YOU MAY ALSO NEED TO PROVIDE ADDITIONAL DOCUMENTS, SUCH AS: SIGNATURE, APPOINTMENT OR OFFER LETTER, AND EMPLOYEE ID CARD.
BENEFIT
- The National Pension System (NPS) offers a variety of benefits, including tax benefits, flexibility, and portability
- NPS subscribers can receive tax benefits on their contributions, withdrawals, and annuity purchases. For example, employees can deduct up to 10% of their salary (basic + DA) from their taxes
IMPORTANT INFORMATION
THE NATIONAL PENSION SYSTEM (NPS) OFFERS MANY BENEFITS, INCLUDING:
- TAX BENEFITS: NPS OFFERS TAX BENEFITS ON CONTRIBUTIONS, PARTIAL WITHDRAWALS, AND THE PURCHASE OF AN ANNUITY.
- · PORTABILITY: NPS ALLOWS YOU TO MOVE YOUR ACCOUNT BETWEEN JOBS, SECTORS, AND LOCATIONS WITHOUT LOSING YOUR BUILT-UP CORPUS.
- · INVESTMENT OPTIONS: NPS ALLOWS YOU TO CHOOSE YOUR OWN INVESTMENT OPTIONS AND PENSION FUND.
- · PHASED WITHDRAWALS: YOU CAN WITHDRAW YOUR NPS FUNDS IN A PHASED MANNER OVER A PERIOD OF TIME.
- · ANNUITY: YOU CAN USE AT LEAST 40% OF YOUR NPS CORPUS TO PURCHASE AN ANNUITY, WHICH PROVIDES A REGULAR INCOME AFTER RETIREMENT.
- · FLEXIBILITY: YOU CAN CONTRIBUTE TO NPS AT ANY TIME DURING THE FINANCIAL YEAR AND CHANGE THE AMOUNT YOU CONTRIBUTE EACH YEAR.
- · REGULATION: NPS IS REGULATED BY PFRDA, WHICH MONITORS AND REVIEWS FUND MANAGERS’ PERFORMANCE.