INSUBCONTINENT EXCLUSIVE:
NPS offers growth options through long term market-linked returns, said PFRDA.
National Pension System (NPS) is an easily accessible, low cost, tax-efficient, flexible and portable
retirement savings account
Under NPS, an individual contributes to his retirement account and his employer can also co-contribute for the employee's social
There is no defined benefit that would be available at the time of exit from NPS and the accumulated wealth depends on the contributions
made and the income generated from investment of such wealth
The greater the value of the contributions made, the greater the investments achieved, the longer the term over which the fund accumulates
and the lower the charges deducted, and the larger would be the eventual benefit of the accumulated pension wealth.NPS is managed by the
Pension Fund Regulatory and Development Authority (PFRDA).(: NPS Withdrawal Rules Changed - 10 Things To Know)What is NPS Corporate Model
This model is known as "NPS -Corporate Sector Model", stated PFRDA on its website pfrda.org.in.What are the benefits to employees under
Corporate Model of NPSNPS is the cheapest investment product with better growth options through long term market-linkedreturns, said
PFRDA.NPS provides choice of various funds with a flexible investment pattern.An individual retirement account for record keeping at
individual level ensures portability across geographies and employment.The employee's as well as the employer's contribution towards the
NPS account of employee is eligible for tax exemption as per the Income Tax Act, 1961 as amended from time to time.NPS offers a Tier II
account which is a voluntary savings facility with anytime liquidity/withdrawal option.Routine/quarterly disclosure of the funds helps
subscriber achieve better fund management under NPS.There is an auto choice option for those who do not have the required knowledge to
50,000 under Section 80CCD(1b) of the Income Tax Act, 1961.)PFRDA offers an option to subscribers to remain invested even after retirement
(deferred withdrawal option is available).Tax benefit to employees under NPS Corporate Model:Employee's contribution is eligible for tax
deduction up to 10 per cent of salary (Basic + Dearness Allowance) under section 80 CCD (1) within the overall ceiling of Rs
1.50 lakh under Section 80 CCE.NPS allows additional tax benefit on contribution up to Rs
50,000 under Section 80CCD(1b) of the Income Tax Act, 1961
This is over and above the tax deduction available under Section 80 CCE.Employer's contribution is eligible for tax deduction up to 10 per
cent of salary (Basic + Dearness Allowance) contributed by employer under section 80 CCD (2), which shall be excluded from the limit of Rs
1.50 lakh provided under Section 80 CCE.(: FD Vs EPF Vs PPF Vs NSC Vs NPS: Interest Rates, Tax Benefits, Liquidity And Other Features
Compared)How are the funds contributed by the subscribers managed under NPSThe funds contributed by subscribers are invested by PFRDA
registered Pension Fund (PFs) as per the investment guidelines provided by PFRDA
market downturn by a judicious mix of investment instruments like government securities, corporate bonds and equities
These are: ICICI Prudential Pension Fund, LIC Pension Fund Ltd, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Fund
Ltd, UTI Retirement Solutions Pension Fund, HDFC Pension Management Company Ltd, and Birla Sunlife Pension Management Ltd.
