How about saving an extra Rs. 15,600 in taxes?

Yes you heard it right you can now invest in the National Pension Scheme (NPS) and save another Rs.15,600 in taxes over and above Scripbox tax saver and section 80C.

How about saving an extra Rs. 15,600 in taxes?

Yes you heard it right you can now invest in the National Pension Scheme (NPS) and save another Rs.15,600 in taxes over and above Scripbox tax saver and section 80C.

Well regulated

NPS is regulated by PFRDA, with transparent investment norms.

Tax free withdrawal

60% of corpus withdrawn in lump sum is exempt from tax.

Tax proof

You will receive tax proof within 2 working days in your email id.

The Process?

Quite simple.

Create an account

Click here to create your NPS account powered by KFINTECH. Upload documents and get started.

Make payment

You can invest either through credit card, debit card or Net-banking and get tax proof within 2 working days. For subsequent contribution click here.

Choose asset allocation

When prompted choose auto mode of asset allocation.

Benefits of investing in NPS

Tax savings beyond Section 80C

NPS provides an option to save tax over and above Section 80C for investing Rs 1.5 lakh. So you can save up to Rs 15,600 additional tax every year.

Tax benefits on the maturity amount

NPS falls in the EEE or exempt-exempt-exempt category when it comes to taxation. The three exemptions you get are – no tax on the amount invested, no tax on the returns generated and no tax on the maturity amount.

Automated risk reduction with age

NPS has an in-built risk reduction strategy. It ensures when the retirement age nears, your exposure to equity is minimal and your corpus is safer instruments.

Flexible investing

One of the best things about NPS is the flexibility it provides for investments. You can invest from either credit card, debit card or net-banking.

FAQ

How can I create an NPS account?

Click here to create your NPS account. You will be taken to HDFC Pension's website.
1. Link your mobile number, PAN number and Aadhar number to the account
2. Validate your registration using the OTP received at your registered mobile number for a successful KYC verification
3. On successful registration, Permanent Retirement Account Number (PRAN) will be received. PRAN is mandatory to login to the National Pension System account.

How will I get the Tax proof?

You will get the tax proof in your registered email id within 2 working days.

What happens on maturity?

Withdrawal on maturity (or on attaining the age of 60): The Subscriber can withdraw a maximum of 60% of the pension wealth as lump-sum and is required to transfer a minimum of 40% of the pension wealth to Annuity. Where the accumulated pension wealth is less than Rs.2 lakhs, the entire amount can be withdrawn as lump-sum.

Who can subscribe to NPS?

A citizen of India, whether resident or non – resident including OCI can join the NPS subject to following conditions:
1. Subscriber should be between 18 – 65 years of age as on the date of submission of her application.
2. Subscriber should comply with the prescribed Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form for NPS.

What is the current interest rate of NPS?

NPS does not give a guaranteed interest rate. The growth rate depends on the fund manager. Historically, HDFC pension has given 9%-12% interest based on asset class.

What are the tax benefits under NPS?

Subscriber gets the following tax benefits on contributions:
1. Investment up to Rs. 50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961.
2. Up to 60% of Corpus withdrawn in lump sum is exempt from tax.
3. Balance amount invested in annuity is also fully exempt from tax.

Can I exit from NPS after 1 year?

No one cannot exit the NPS scheme after one year of holding the account. NPS subscribers can exit the scheme on superannuation, upon death and premature exit. The premature exit is only allowed after the subscriber has completed ten years from the date of investment. However, 80% of the corpus has to be used to purchase annuity so that the subscriber can earn a monthly pension. The remaining 20% can be withdrawn in lumpsum.