National Pension System: If you are planning to invest for more funds after retirement, then the National Pension System is a good option. By investing in it, you can also avail pension every month along with depositing funds. The amount of pension in this scheme will depend on your investment, the higher the amount of investment, the more funds and the higher the monthly pension will be. Any citizen of India between 18 to 70 years can join NPS.
NPS is such a scheme in which government and private sector employees can also invest. In this scheme, more amount or longer investment can be made to get pension of lakhs. If you are also planning to invest in NPS or are investing, then it is important to know about some of its essential rules.
Special rules related to NPS
Earlier the maximum investment age was 65 years, but now it has been increased from 18 to 65 years.
– The process of withdrawal from NPS has now been simplified, in which lumpsum amount of 5 lakh or less can be withdrawn.
After 65 years, up to 50% can be allocated in equity.
– Withdrawal before 3 years will be pre-mature exit, under which up to 80% of the annuity amount is given.
If the amount is less than Rs 2.5 lakh, then you can withdraw the entire amount under pre-mature exit.
Two accounts are opened under NPS
Two accounts Tier 1 and Tier 2 are opened under the National Pension System. Pension accounts are opened under Tier 1, while Voluntary Savings Account is under Tier 2. Anyone can open an account under Tier 1, whereas under Tier 2 only those accounts who already have a Tier 1 account can open it.
Tax Exemption under NPS
Tax exemption is also given under NPS account, under section 80CCD of Income Tax Act, exemption of up to Rs 50 thousand and up to Rs 1.5 lakh under section 80C is available. At the same time, the benefit is not given on completion of its maturity.