NATIONAL PENSION SYSTEM (NPS) - FY 2015-2016

NPS is a pension scheme regulated by Pension Fund Regulatory & Development Authority (PFRDA), and initiated by Government of India.

It gives an additional deduction of Rs 50000/- from FY 2015-2016 under section 80CCD (1B) which currently is only for NPS.

This deduction is above your 1.5 lac u/s 80 CCC limit.

Let us see some more features of NPS:

1. They invest our money in three baskets of investment in auto/active choice.  E- Equity, C- Corporate Bonds & G- Government Securities.

2. It allows for withdrawal up to 60% of retirement corpus post retirement. 

3. Withdrawal amount can be spread over a period of 10 yrs post retirement age.

4. Minimum 40% of the accumulated corpus has to be transferred to annuity provider.

5. Withdrawal of 20% is allowed on premature closure. Balance 80% is utilized to buy annuity.

6. Those who prefer risk, investment in equity up to 50% can be done through the scheme.

7. For those who prefer secured investment 100% debt fund options are available.

8.Once in a year you can switch between different fund options, enabling to move in line with market opportunities.

9.You will receive unique PRAN (Permanent Retirement Account Number) with T-pin which remains the same through your life to view your subscriptions and track your investment. It can be used from any location in India.

10. Scheme is open for all citizens of India (Resident/NRI) who are between 18-60 years of age.

Thus NPS is well regulated, transparent and flexible pension scheme providing financial security and stability during old age.

It is a measure taken by our government to provide social security to our citizens.