The government of India launched many policies for the prosperousness of Indian citizen.The National Pension System (NPS) is one of them an optional pension system managed and operated by Pension Fund Regulatory and Development Authority (PFRDA). This system is mentioned as an Act of Parliament of India. The Indian government started National Pension System to stop the benefits of pensions for all government employees who connect with it after 1 January 2004.
Who is eligible to Join in NPS (National Pension System)?
A citizen of India, whether who resides in India or somewhere else can join National Pension System under the following conditions:
1. A person between the age of 18 to 60 years can join the National Pension System on the date of submission of his/her application to the Point of Presence / Point of Presence–Service Provider -authorised branches of POP for NPS (POP-SP).
2. The subscribers should fill correct KYC details in the Subscriber Registration Form.
3. A person who is bankrupt and unbalanced cannot join National Pension System
Structure of National Pension System
NPS is very feasible and one of the low-priced pension plans in the world. Because of its low price structure, this pension plan will not able to collect the attention in government segment. The charge structure of National Pension System is given below
• The government of India decided Rs 125 for POP charges as an enrolment fee and after that deduct 0.25% on every fiscal transaction. For every non-financial transaction, government deduct Rs. 20. These charges are collected in advance.
• Only fifty rupees will be charged to open your account and four rupees will be deducted for every transaction. For the maintenance of National Pension System, you have to pay only Rs. 190 per month. These amounts are collected through withdraw of units in member fund.
• Currently, 0.01% amount is deducted for fund management. This charge is collected through abstraction of units.
• In order, to electronic segment, you have to pay 0.0075% as custodian charges and 0.05% for physical segment
How to cancel subscription from National Pension System
Before attaining the age of 60
Withdrawals from National Pension System (NPS) are not possible before completing the age of 60. But from the latest conditions, a candidate can make withdrawals from the NPS scheme only after 10 years. In the entire duration, only three times a person can make withdrawals and more than that is not applicable to the National Pension System.
After attaining the age of 60
At the age of 60, a candidate can withdraw his whole amount but now some changes are made in this scheme. Recently the government of India raised the duration of withdrawal. Now candidate can withdrawal his amount between the age of 60 to 70. This has been done in order to motivate people to work beyond the age of sixty.
Tax Benefits under the NPS Scheme
NPS meet the requirement for tax benefits less than three different parts of Indian tax laws
Under the Section 80C, Indian government provide tax relaxation up to Rs. 150,000
Under the Section 80CCD (1) Indian government provide tax relaxation up to Rs 50,000
Under the Section 80CCD (2) Indian government provide tax relaxation up to Ten percent of basic salary give up by the employer.
Advantages of National Pension System (NPS)
NPS is an explicit and worthwhile system in which all the pension amount are invested in the pension fund schemes and under this scheme employee will be able to know the amount of the investment on the daily basis.
National Pension System is very easy to understand only the candidate has to open an account with his/her nodal office and then he/she will get a Permanent Retirement Account Number (PRAN).
When you get transferred to another place or office then don’t need to worry about National Pension System because it is transferable and will remain same. Each employee is recognised by a distinctive number and has a separate retirement account number which is portable.
National Pension System is supervised by Pension Fund Regulatory and Development Authority. You can see the investment term & conditions and performance review on the website.
Supervisor of National Pension System (NPS)
Pension Fund Regulatory and Development Authority (PFRDA) is an autonomous body of Indian government created to develop and monitor the pension department in India.
The point of Presence (POP) is the first medium through with subscriber can communicate with the National Pension System bodies. The point of Presence Service Providers (POP-SPS) is an official branch of POP which provides customer services to the subscribers NPS.
Significant Characteristic of National Pension System
NPS come with excessive benefits for Indian citizen. The government of Indian frame this scheme so that people can sure their future mainly in old age. Under this scheme, Indian citizen is introduced with a special investment opportunity. Some of the characteristics of NPS are
National Pension System account is very portable and can be accessible through the country.
National Pension System provides an online platform in which each Subscriber gets his/her personal login ID and Password. With this unique ID, a subscriber can get NPS details on his/her computer.
This scheme offers many services to their Subscribers like he/ she can select Service Providers, Pension Fund Manages, Funds, Investment Options, and Annuity Service Provides & Annuity Plans.
National Pension System allows its subscribers to change the Service Provider, Investment choice, Fund and manager of Pension Fund.
Subscriber of NPS can change the instalment amount and duration according to his/her requirement
NPS is synchronised by PFRDA, and deal with the legal investment and its term and conditions are clearly understood by the subscribers.
In NPS, efficient injustice management is set up which help subscriber in case of any offence and wrong information. Call Center number, Email or Postal Mail address is provided to a subscriber in case of any query.
NPS designed transparent investment norms which can be viewed on respective Pension Fund Manager’s website.
NPS charged only 0.01% for fund management and it is cheapest investment options in all over the world.
How to Open National Pension System Account
There are two methods through which you can open National Pension System Account
Visit Here and then going to E-NPS for online enrolment in NPS.
You can open NPS is using your PAN card, bank account details and by using Aadhaar card. After that, you have to fill correct information like contact number, bank account number, email ID, Date of Birth and Address. There are 15 registered banks only in those banks you can open your NPS account. The procedure of registration in online and offline same in term of information, but if you link you NPS account with PAN card, and then you have to share your authorized bank account for overseeing your personal details.
The offline register process begins with finding a point of presence (PoP) and all the reputed banks provide at least 63 PoPs. After that, you have to fill registration form with correct personal details.
Contribution: The subscriber needs to contribute minimum five hundred rupees per month and you at least six thousand per every. Then a permanent retirement account number (PRAN) with unique ID password sent to the subscriber.