7 things to know about NPS
• Min Max Deposit
• Acc opening procedure
• Maturity Period
• Interest rate
• Tax Benefits
• Withdrawal
• Tenure
A Detailed Thread🧵⤵️
#investing #stockmarkets
• Min Max Deposit
• Acc opening procedure
• Maturity Period
• Interest rate
• Tax Benefits
• Withdrawal
• Tenure
A Detailed Thread🧵⤵️
#investing #stockmarkets
NPS is a govt-sponsored scheme, specially formulated for retirement purposes. NPS involves a diversified portfolio which is a combination of govt bonds, corporate debentures & equities.
Account opening:
While opening account fr NPS, investors r eligible to open 2 kinds of accounts, Tier 1 & Tier 2 NPS accounts.
When NPS is opened, money gets deposited into account every month/yr & interest is compounding. Ideal fr people with medium to high-risk appetite.
While opening account fr NPS, investors r eligible to open 2 kinds of accounts, Tier 1 & Tier 2 NPS accounts.
When NPS is opened, money gets deposited into account every month/yr & interest is compounding. Ideal fr people with medium to high-risk appetite.
Min & Max deposits:
Minimum deposit amount is Rs1,000 and maximum there is no limit but one can get tax benefits only up to 1.5lakh.
Minimum deposit amount is Rs1,000 and maximum there is no limit but one can get tax benefits only up to 1.5lakh.
If the account holder fails to deposit:
If you miss paying the minimum amt of Rs1,000 altogether, ur account will be frozen. However, you can unfreeze it by paying the minimum amt & penalty of Rs100.
If you miss paying the minimum amt of Rs1,000 altogether, ur account will be frozen. However, you can unfreeze it by paying the minimum amt & penalty of Rs100.
Tenure:
The amt invested can be withdrawn only at retirement which is 60 yrs.
There is an extension of maturity upto 70 yrs. Also, when u withdraw frm the scheme at 60 yrs, u can only withdraw 60% amt in a lump sum. However, the remaining 40% will be converted into annuity.
The amt invested can be withdrawn only at retirement which is 60 yrs.
There is an extension of maturity upto 70 yrs. Also, when u withdraw frm the scheme at 60 yrs, u can only withdraw 60% amt in a lump sum. However, the remaining 40% will be converted into annuity.
Pre-mature withdrawals:
NPS allows premature withdrawal only under specific circumstances.
NPS allows withdrawal only after the completion of 3yrs of the scheme where 20% can be withdrawn & rest 80% must be used to buy annuity.
NPS allows premature withdrawal only under specific circumstances.
NPS allows withdrawal only after the completion of 3yrs of the scheme where 20% can be withdrawn & rest 80% must be used to buy annuity.
Interest:
NPS allows investors to generate market-based returns. The portfolio of NPS has equities, bonds and fixed income securities. So, the returns of NPS outperform the returns of PPF varying between 8-9% p.a
NPS allows investors to generate market-based returns. The portfolio of NPS has equities, bonds and fixed income securities. So, the returns of NPS outperform the returns of PPF varying between 8-9% p.a
Tax Benefits:
Contribution to the NPS account is eligible for tax exemption under section 80CCD as well as section 80CCD(1B).
One can get an aggregate tax deduction of Rs 2lakh by investing in NPS, inclusive of add Rs50,000 tax deduction.
Contribution to the NPS account is eligible for tax exemption under section 80CCD as well as section 80CCD(1B).
One can get an aggregate tax deduction of Rs 2lakh by investing in NPS, inclusive of add Rs50,000 tax deduction.
What if the person dies before 60 yrs?
In this case, the entire accumulated wealth created by the person will be paid to the nominee/legal heir of the subscriber.
In this case, the entire accumulated wealth created by the person will be paid to the nominee/legal heir of the subscriber.
• Minimum Deposit - Rs.1,000
• Maximum Deposit - no limit
• Maturity Period - 60 yrs
• Int Rate - 8-9%
• Tax Benefits - aggregate benefit up to 2 lakh
• Premature Withdrawal - in certain cases
• Maximum Deposit - no limit
• Maturity Period - 60 yrs
• Int Rate - 8-9%
• Tax Benefits - aggregate benefit up to 2 lakh
• Premature Withdrawal - in certain cases
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