Nps is going to make this change, learn everything
If you are a NPS (National Pension System) subscriber, it is news for you. Very soon you will be able to invest in the national pension system under sip (systematic investment plan).
If you are a NPS (National Pension System) subscriber, it is news for you. Very soon you will be able to invest in the national pension system under sip (systematic investment plan).
SIP in NPS will work the same way it works in mutual funds. After this facility is started, your account will automatically deduct money from a fixed date. However, the bank starts the service only after the customer’s order. If this facility is not started, you have to deposit the instalment every month.
SIP option to start very soon
NSDL is currently working towards starting SIP service. However, no date has yet been announced on how long the service will be launched. The introduction of auto debit facility will greatly ease retail investors. In the recent past, the government has included nps tier-II account under section 80 C of income tax. Earlier NPS tier-II did not have a lock-in option. It has now become a 3-year lock-in. It has a limit of up to Rs 1.5 lakh, which can also include a scheme like life insurance contribution, ELSS.
How many NPS accounts are there?
The national pension system is of two kinds-Tier-1, Tier-2. There is some difference between the two accounts which need to be understood. You cannot withdraw all the money together even after retirement from tier-1 account. From tier-2 account, subscribers can withdraw all the money together.
What is the National Pension System?
NPS is a government pension scheme which was launched in January 2004. Initially it was launched for government employees. In 2009, it was made open to all. Under this, an angel deposits it in this fund till retirement. After retiring, he can withdraw a part of the corpus together and the rest gets him as a pension. A person can subscribe to the same NPS for him.
When can you withdraw money from NPS?
It is a pension product, so it cannot be withdrawn before 60 years. After 60 years, maximum 60 percents can be removed from the corpus which is tax free. The corpus cannot be removed 40 cents and for annual income, the subscriber will have to use it in PFRDA listed insurance companies.
Can money be withdrawn before 60 years?
If a subscriber wants him not to take a lump sum money at the age of 60 years, he can postpone it to the age of 70 years. However, it cannot be avoided further. If you want to withdraw before the age of 60 years, a maximum of 20 per cent of the deposit can be withdrawn. An investment of 80 per cent will have to be made for annual income.
