National Pension System Trust(NPS Trust) is a specialized part of Pension Fund Regulatory and Development Authority that falls under the Ministry of Finance of India. India’s national pension system (NPS), is a defined contribution, voluntary pension system. National Pension System, like PPF and EPF is an EEE (Exempt-Exempt-Exempt) instrument in India where the entire corpus escapes tax at maturity and entire pension withdrawal amount is tax-free.
NPS was launched by the Government of India. It decided to cease defined benefit pensions from all employees who joined it after 1 April 2004. The scheme was initially only for government employees. In 2009, OCI cardholders and PIOs were allowed to apply. PFRDA raised from 65 to 75 the entry age to the National Pensions System (NPS), effective 26 August 2021. Under the new norms, Indian Citizen can join NPS. Anyone over 65 years of age, Indian Citizen or resident, and Overseas Citizen of India(OCI) can continue or defer NPS Accounts up to 75 years. It is administered and regulated under the Pension Fund Regulatory and Development Authority.
NPS was made completely tax-free by the Government of India in India. This includes the corpus, which is exempted tax at maturity. In addition, the 40% Annuity became tax-free. Individuals who are Subscribers of NPS can receive tax benefits for Tier I accounts in Sec 80 CCD (1). This is subject to the overall ceiling Rs. 1.5 lac as per Sec 80 C under Income Tax Act. 1961. For investments above Rs. NPS subscribers who subscribe to subsection 80CCD (1B) are eligible for a further deduction of up to Rs.50,000 in NPS (Tier II account). The NPS amendments were made known through changes to The income-tax Act, 1961. These changes were made during the 2019 Union buget of India. Investments into Tier II NPS Accounts are not subject to tax. NPS has a limit of EEE up to 60%. 40% must be used in order to purchase annuity. Taxes are at the applicable tax level. NPS Login
NPS contributions receive tax exemptions according to Section 80C(1), Section 80CCC & Section 80CCC(1) of the Income Tax Law. NPS now provides an additional tax advantage of Rs.50,000 under Section80CCD(1b). This is in addition the Section 80C exemption of Rs 1.5 million. NPS’s private fund managers are an important part. NPS, which is tax-free for 40% of the corpus at maturity, is ranked just below equity Linked Saving Scheme (ELSS).
NPS Fund Managers & Schemes
1. “Net Asset Value” vs. “Date,” graphical visualisation
2. Individual charts
3. Comparison of Performance
4. Yearly analysis
5. Financial growth
6. Selection of the scheme