The central government has also included the tax exemptions and essential facilities given in the National Pension Scheme (NPS) in the newly launched Unified Pension Scheme (UPS). For this, necessary amendments have been included in the new Income Tax Bill-2025 (No. 2). Under this, now 60% of the lump sum amount received at the time of retirement in UPS will also be tax free.

These amendments will come into effect from the financial year 2025-26. This change will specifically apply to those central government employees who opt to shift from NPS to UPS before 30 September 2025. The new provisions have been incorporated in Section-10 (Subsections 12A, 12B and 12AB) of the Income Tax Act.

Apart from this, a new subsection (6) has also been added to section 80CCD of the Income Tax Act. It is worth noting that UPS was implemented from 1 April 2025. This step was taken after the demand of employee unions across the country, in which it was said to restore the system of giving fixed pension like the Old Pension Scheme (OPS).

Tax experts say that this move will provide the same tax benefits to employees opting for UPS as are already available in NPS. This will give them more financial benefits at the time of retirement.

No restoration of OPS

With this, the government has again clarified that there is no proposal under consideration to restore the Old Pension Scheme (OPS) for central employees. Finance Minister Nirmala Sitharaman gave this information in response to a question in the Lok Sabha.

Along with this, while explaining the reason behind closing OPS, he said that the old pension scheme had an unbearable fiscal liability on the government treasury, due to which the government distanced itself from OPS and implemented NPS.

These changes were incorporated in UPS

1. Tax-free withdrawals on retirement

Employees covered under UPS can withdraw up to 60% of their pension corpus in lump sum at the time of retirement, voluntary retirement or superannuation (retirement at a specified age). No income tax will be payable on this. This system is also applicable in NPS.

2. Lump sum on superannuation

At the time of superannuation, the member will receive 10% of his monthly salary (basic pay + dearness allowance) for every six months of eligible service as a lump sum. This too will be tax free. This payment will not reduce his assured monthly pension.

3. Tax on early withdrawal

If an employee or his nominee withdraws money from the UPS account before retirement or superannuation, the entire amount withdrawn will be treated as income and taxable in the same financial year.

4. Exit the plan or close the account

If a member closes the UPS account or exits the scheme before retirement, the entire amount withdrawn (including interest and investment earnings) will be taxable in full that year.

5. Transferring funds to purchase pension

At the time of retirement, if the balance amount is invested in a ‘pooled corpus’ to purchase a pension plan (annuity), it will not be taxable.

6. Rules at the age of 60

When the member turns 60 years old, he can withdraw 60% of the pension fund tax free. The remaining 40% will have to be used to buy a pension plan (annuity).

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Its main objective is to motivate individuals to make regular contributions to their pension funds during their working years, thereby ensuring a safe financial planning after retirement.

This scheme, jointly run by the government and the Pension Fund Regulatory and Development Authority (PFRDA), does not promise a predetermined pension amount but offers the possibility of favorable investment returns. NPS assets have achieved a compound annual growth rate (CAGR) of 37%, reaching Rs 2.76 lakh crore, mainly due to 58 lakh non-government customers who have contributed to this growth. Let us know what changes have happened in NPS recently.

1.Tax deduction limit

In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced significant changes in the tax deduction limit for employer contributions. This adjustment increased the employer contribution benchmark from 10% to 14% of the employee’s salary. As a result, employees will now be able to get an additional deduction equal to 4% of their basic salary with respect to employer contributions to NPS. For example, an employee earning a basic monthly salary of ₹1 lakh can now avail an additional deduction of ₹4,000 every month.

2. NPS Withdrawal

The rules for final withdrawal from the National Pension System (NPS) have been revised in 2024. Now the subscriber is allowed to withdraw 60% of his total amount as a tax-free lump sum. The remaining 40% must be used to buy an annuity plan, which is not taxable on withdrawal but will be taxed during the annuity payment phase.

If the total amount on retirement is more than Rs 5 lakh, 40% of the NPS corpus should be used to buy an annuity plan, this portion will not have any tax implications. However, the annuity payment will be subject to taxation depending on the income tax bracket of the individual.

3. NPS Investment Allocation

The investment allocation guidelines within NPS have been amended. The rule now stipulates that individuals can maintain a maximum of 75% equity exposure until the age of 60. This allows customers to take advantage of investment growth opportunities during their employment years.

4. Equity allocation in Tier-2 NPS accounts

The government has increased the equity allocation limit for Tier-2 NPS account holders from 75% to 100% tax-free. This adjustment enables investors to increase their exposure to equities within their Tier-2 NPS accounts, thereby potentially increasing the potential for growth.

5. Direct Remittance (De-Remit) Service

With the introduction of Direct Remittance (De-Remit) facility, NPS subscribers can now access same-day NVA for their investments. By signing up for a Virtual Account Number linked to their bank account, investors can avail instant NVA on their contributions through the De-Remit process. This facility offers significant benefits to NPS investors.

6. Systematic Lump Sum Withdrawal

From February 2024, NPS subscribers had the option to make partial withdrawals for various purposes, such as funding their children’s higher education, buying or constructing residential property, and covering medical expenses. Subscribers can opt for Systematic Lump Sum Withdrawal (SLW) to withdraw up to 60% of their NPS funds periodically between the ages of 60 and 75. The remaining amount can be used for annuity planning.

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Now the benefit of this facility has been given to private sector employees as well. Let’s know about this in detail.

What has changed

The government has increased the tax benefit for those investing in NPS. Now the limit of employer’s contribution to NPS for private sector employees has been increased from 10% to 14%. This means that now a larger part of your salary will go to NPS tax free and your retirement fund will become even stronger.

Who will get the benefit

There is one thing to keep in mind here. This benefit will be available only to those who choose the new tax system. Those who choose the old regime will not get any benefit from it. Before this change, this facility was available only to government employees. This time, the facility of Vatsalya account has also been provided for children.

What is NPS Vatsalya

In this scheme, parents or legal guardians will be able to make contributions for minors. When the minor becomes an adult, the scheme can be converted into a normal NPS account. When the child becomes an adult, this scheme can be easily converted into a normal NPS account.

What is NPS?

NPS stands for National Pension System. It is a pension scheme launched by the Government of India. This scheme is specially designed for unorganized sector employees and self-employed individuals. However, this scheme is open to all Indian citizens. When you invest in NPS, you get two accounts – Tier 1 and Tier 2.

Also Read: Public Special Scheme: Deposit only ₹ 100 daily, you will get a return of up to 8 lakhs after so many years

What are Tier 1 and Tier 2 accounts

Tier 1 Account: This is a retirement account. You cannot withdraw the amount deposited in this account before the age of 60.

Tier 2 Account: This is a voluntary savings account. You can withdraw the amount deposited in this account at any time.

What are the benefits of investing in NPS?

There are many benefits of investing in NPS, such as:

Tax benefits: Investing in NPS gives you tax benefits under Section 80CCD of the Income Tax Act.

Investment options: NPS gives you the option to invest in different asset classes such as equity, government bonds and corporate bonds.

Low cost: NPS is a low-cost pension plan.

Portability: NPS is a portable pension plan. You can transfer your NPS account with you even if you change jobs.

Tax benefits in NPS

As per the current income tax laws, the tax benefits available on investing in the National Pension System (NPS) depend on the tax regime chosen by the taxpayer in the respective financial year. The old tax regime allows three deductions under the Income Tax Act, 1961. All the three deductions can be claimed under sections 80CCD (1), 80CCD (1B) and 80CCD (2). The new tax regime allows only one deduction under the Income Tax Act, 1961, which is the deduction under section 80CCD (2).

How much deduction benefit do you get

Here is a look at these three deductions as per the current income tax laws:

Section 80CCD (1): This section allows a maximum deduction of 10% of salary or ₹1.5 lakh (whichever is lower) for investments made in NPS Tier-1 in a financial year. It is important to note that this deduction falls within the overall limit of ₹1.5 lakh allowed under Section 80C. So, if you invest up to ₹1.5 lakh in other eligible investment options (such as ELSS mutual funds, PPF, EPF, etc.) under Section 80C, you cannot claim additional deduction for any amount invested in NPS under Section 80CCD (1). This deduction is available only under the old tax regime.

Section 80CCD (1B): This section provides an additional deduction of up to ₹50,000 over and above the Section 80C deduction. To claim this deduction, an individual must invest in an NPS Tier-1 account. This deduction is available only under the old tax regime.

Section 80CCD (2): This deduction is available under both tax regimes – old and new. This deduction can be claimed when the employer deposits money in the employee’s Tier-1 NPS account. A maximum of 10% of the gross taxable income is allowed as salary deduction under this section.

However, note that if an employer’s contribution to NPS, Employees’ Provident Fund and Superannuation Fund exceeds ₹7.5 lakh in a financial year, the excess amount will be taxable in the hands of the employee. In addition, interest earned on the excess contribution will also be taxable.

Therefore, an individual can use NPS to claim a maximum deduction of up to ₹9.5 lakh from gross taxable income through three routes under the old tax regime – Section 80CCD (1) (maximum ₹1.5 lakh); Section 80CCD(1B) (₹50,000) and Section 80CCD (2) (maximum ₹7.5 lakh). On the other hand, in the new tax regime, a person can use NPS to claim deductions of up to ₹7.5 lakh only under Section 80CCD (2) of the Income Tax Act.
All the deductions mentioned above are claimed from the gross total income.

Tax on withdrawal from NPS account

At the time of withdrawal, an individual is mandatorily required to use at least 40% of the NPS corpus to buy an annuity (pension) plan from an insurance company. The remaining, which can be a maximum of 60%, can be withdrawn as a lump sum.

The lump sum is exempt from income tax. However, the annuity is taxable in the hands of the NPS investor. The annuity is taxable under the head “Income from other sources”. Since the pension is received from life insurance companies, the standard deduction tax benefit is not available on this pension.

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The opposition has been supporting the Old Pension Scheme for a long time. Opposition governments in many states have also promised to bring back the old pension scheme. The Modi government does not seem to be in favor of this. But preparations to change the National Pension Scheme (NPS) to give higher pension to the employees have been going on for a long time.

Now it is expected that the government can make a big announcement related to this in the budget to be presented on July 23. The government can offer guaranteed returns in NPS. According to a report of the Times of India, central government employees can be promised to get 50 percent of their last salary as pension.

Also Read: Bank Holiday: Will banks be closed today on Saturday? Check RBI’s list of holidays

Even in the current scheme, employees who stay invested for 25-30 years are getting good returns. Especially those employees who have joined after 2004. According to the report, the Somanathan Committee has studied the international practice of pension as well as the pension policy of the Andhra Pradesh government. This committee has assessed the impact of guaranteed returns.

Somanathan committee was formed last year

The government has been taking steps for a long time to make NPS attractive. The government is seriously considering that central government employees should get 50 percent of their last salary as pension. After an announcement by Finance Minister Nirmala Sitharaman, a committee was formed in the year 2023 under the chairmanship of Finance Secretary TV Somanathan. The job of this committee is to find ways to improve pension benefits under NPS without bringing back the old pension scheme. This committee was formed last year after the Congress announced to bring back the old pension scheme in many states. At that time the central government had refused to bring back the old pension scheme.

Difference between OPS and NPS

In the old pension scheme, government employees get half of their last salary adjusted with the recommendations of the Pay Commission as pension. In the old pension scheme, employees do not have to make any contribution for pension. Whereas the National Pension Scheme is a contribution based pension scheme. In this, the employee has to contribute 10 percent of his basic salary and the government contributes 14 percent. This amount is invested in various investment options and the employee gets pension from it.

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After the Modi government came to power for the third consecutive time, the expectations of individual taxpayers have increased significantly from the full budget to be presented on July 23, 2024. This time the budget is expected to focus on the middle class. In this budget, it is expected that many big announcements can be made by the government to provide relief to the National Pension Scheme (NPS) members. In this budget, the tax exemption limit on NPS contribution can be increased to 12 percent, currently it is 10 percent.

Benefit of deduction under the old regime

Investment in NPS (National Pension Scheme) gets the benefit of deduction of income tax under the old regime. It is a saving scheme run by the government to provide security in old age. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). The money deposited in it and the interest received on it is tax free. But a little tax is levied while withdrawing the money. Now PFRDA has recommended increasing the tax exemption. The regulator says that in terms of tax, there should be equal opportunities for companies and employers contributing to NPS just like EPFO, right now there is inequality in it.

Also Read: Bank Holiday: Banks will remain closed in this state of the country today, check the list of RBI holidays

Facility to deposit up to 10% of salary

Under NPS (National Pension Scheme), salaried class people can deposit up to 10% of their salary. Businessmen can deposit up to 20% of their total earnings. This is a benefit available under section 80CCD(1) of the Income Tax Act. In the old tax regime, this can be clubbed with the limit of Rs 1.5 lakh available under section 80C. If you are in the old tax regime, you can additionally avail deduction of up to Rs 50,000 on the amount voluntarily deposited in NPS. This is available under section 80CCD(1B) of the Income Tax Act.

Two benefits of increasing the limit of NPS

In Budget 2024, the additional deduction of up to Rs 50,000 that salaried taxpayers get for voluntary contribution to NPS is available only under the old tax regime. It is expected that the government will implement this deduction in the new tax system as well. There will be two benefits of this. First, taxpayers will be able to get the benefit of additional deduction even in the new tax regime. Second, along with the new tax regime, there will be more investment in retirement schemes as well.

If the contribution increases, the in-hand salary will be less!

Currently, deduction regarding employer’s contribution (maximum 10%) is given under both the old and new tax regimes. The government can consider increasing this limit to 12%. If this happens, it will be like a discount of up to 12% in PF contribution. This can benefit all salaried class taxpayers. However, due to increase in employer’s contribution, the amount of salary received by the employee may be less. Efforts are now being made to make the new tax regime the preferred tax regime. In this, you get a lower tax rate, but for this you have to give up the exemptions on some things.

Apart from this, the government can consider increasing the limit of standard deduction of Rs 50,000 available under the new tax regime to Rs 75,000. This will benefit the salaried class, irrespective of which tax regime they have selected. In view of inflation and rising prices, it can be implemented by the government in Budget 2024. To make the new tax regime more attractive, the government can consider some changes.

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The NPS account will give a lump sum amount to your wife at the age of 60. Apart from this, you will get the benefit of pension every month. This will be your wife’s regular income. The biggest benefit of the NPS account is that you can decide yourself how much pension you want every month. Your wife will not face any shortage of money at the age of 60.

Open NPS account in wife’s name

You can open a New Pension System (National Pension Scheme) account in the name of your wife. You have the option of depositing money every month or yearly as per your convenience. You can open an NPS account in the name of your wife with just Rs 1,000. The NPS account matures at the age of 60 years. Under the new rules, if you wish, you can continue running the NPS account till your wife turns 65 years old.

A fund of ₹1.14 crore will be created by investing ₹5000 monthly

Understand this with an example- Your wife is 30 years old and you invest Rs 5000 every month in her NPS account. If she gets 10 percent annual return on the investment, then at the age of 60, she will have a total of Rs 1.12 crore in her account. She will get around Rs 45 lakh out of this. Apart from this, she will start getting pension of around Rs 45,000 every month. She will keep getting this pension for life.

Also Read: NPCI international signs partnership with Reserve Bank of Peru to enable UPI payments

How much will be the lump sum amount and how much pension

• Age- 30 years
• Total investment period- 30 years
• Monthly contribution- Rs 5,000
• Estimated return on investment- 10%
• Total pension fund- Rs 1,11,98,471 can be withdrawn on maturity
• Rs 44,79,388 Amount to buy annuity plan:
• Rs 67,19,083 Estimated annuity rate: 8%
• Monthly pension- Rs 44,793.

Fund managers do account management

NPS is the Social Security Scheme of the Central Government. The money you invest in this scheme is managed by professional fund managers. The Central Government gives this responsibility to these professional fund managers. In such a situation, your investment in NPS is completely safe. However, the return on the money you invest under this scheme is not guaranteed. According to financial planners, NPS has given an average return of 10 to 11 percent annually since its inception.

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The process of logging into the National Pension Scheme account is going to change from next month. After this new change, NPS members will have to do two-factor authentication to login. To login, they will have to login through mobile OTP after Aadhaar verification. The new process will come into effect from April 1.

The Pension Fund Regulatory and Development Authority (PFRDA) had made two-factor authentication mandatory for login a few days ago. He says that with this, NPS members will be able to make their accounts more secure. The NPS account is currently operated by the Central Record Keeping Agency (CRA).

How will two-factor authentication work?

• PFRDA has already made it clear that the login ID of the APS member will be linked to Aadhaar. In such a situation, members will have to enter OTP to login to the account. It is expected that this will increase the security of NPS account.
• To login to the NPS account, first the members have to enter the login ID and password. After this, after Aadhaar authentication, the password received in the linked mobile number will have to be entered. If even a single step is not completed, the account will not be logged in.
• The member will get five chances to login, if the password is incorrect five times, the account will be locked. Once the account is logged in, members will have to create a new password. For this, members will have to request for IPIN.

Currently login is done only through ID-password

Currently, NPS members can login to their account only with user ID and password. By logging into the account, they can make any kind of change or even withdraw money from the account.

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Currently, a subscriber’s contribution to NPS up to Rs 50,000 gets deduction under section 80CCD (1B). But this facility is available only in the old regime of income tax. Taxpayers using the new regime do not get this deduction. This is in addition to the tax benefit of Rs 1.5 lakh available under Section 80C in the old tax regime.

NPS will be made attractive

Pension fund regulator PFRDA has demanded EPFO-like tax rules on employer’s contribution. Currently, the tax rules on employer’s contribution are different for NPS and EPFO. In NPS, only up to 10 percent of the employer’s contribution to the employee’s corpus (fund) is exempt from tax. This is 10 percent of basic pay and dearness allowance. On the other hand, in EPFO, a total of 12 percent contribution to the employee’s corpus is exempted from tax. For a long time, experts have been demanding to eliminate this difference in tax rules.

The post Budget 2024: Tax rebate of up to Rs 100,000 will be available on NPS ? Benefit in both new and old tax regimes first appeared on Rightsofemployees.com.

The special thing is that people working in private sector can also open an account in this scheme. If you have not opened an NPS account yet and want to open it now, then you do not need to go to the post office. You can easily open an NPS account on SBI Yono app while sitting at home. Know how?

Follow these steps:

• First of all open SBI YONO app in mobile.
• Steps 2. After this you go to Investment option.
• Click on NPS Account Opening section.
• Click on E-Services option and select the option of NPS registration.
• Apart from this, you can also choose the option of SBI branch near your home.
•  Here you will have to fill all the necessary information on the registration form like name, address, Aadhaar number, PAN number etc. and submit it.
• After this your NPS account will be opened.

Benefits of investing in NPS

• NPS Investment i.e. investing in NPS gives the benefit of deduction under section 80C, the limit of which is Rs 1.5 lakh.
• NPS is one of the cheapest pension schemes in the world. The benefits of compounding are available in the long run. Due to this, a big corpus is prepared for your future. At least Rs 500 can be invested in this.
• National Pension System comes under “EEE” category. Tax benefits are available on investment. Returns and maturity amount are also completely tax free.

NPS: Who can invest

• Central employee
• state employee
• Private sector employees
• ordinary citizens

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There is good news for those who have invested money in the government’s popular pension scheme, National Pension Scheme (NPS). NPS regulator PFRDA can provide 100 percent fund withdrawal facility to subscribers under Systematic Lump Sum Withdrawal (SLW).

As of now the fund withdrawal limit is 60 percent. Currently, under SLW, members can withdraw 60 per cent of the maturity amount on retirement or after attaining the age of 60 years on monthly/quarterly/half yearly or yearly basis. Dr. Deepak Mohanty, Chairman of the Pension Fund Regulator (PFRDA), gave information about the preparation of major changes in the rules of the National Pension Scheme (NPS) in the recently organized NPS Chintan Shivir. If this happens then subscribers will get more convenience to withdraw money and use it as per their need.

What is SLW facility?

In SLW facility, NPS subscribers are exempted from purchasing annuity/pension plan till the age of 75 years. This means that they can keep the entire money in the NPS account only. They can withdraw the money kept in the account at regular intervals. But, they can withdraw only 60 percent of the funds.

If the new proposal of PFRDA is implemented then members will be allowed to withdraw 100 percent amount from SLW. PFRDA believes that with 100% fund withdrawal facility, subscribers will keep their money in the NPS fund for a long time. This will give them good returns and more funds will also be deposited with NPS.

SLW facility, NPS customers will have to apply once through online or offline mode. The date of start and end of this facility will also have to be mentioned. Along with this, it will also have to be told at what interval they will withdraw the amount. The remaining amount after each payment will remain invested in NPS. Returns will continue to be received on this remaining amount.

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National Pension Scheme (NPS) is a government-run scheme designed for a good financial future after retirement. NPS is considered to be one of the cheapest pension plans in the world. Contribution can be made in this scheme from the age of 18 to 70 years. There are various tax benefits available on NPS plan, in which a hefty corpus is created for your future after retirement. It is important that you keep checking the balance of NPS account in between. Now you can easily check your NPS balance online from the comfort of your home.

How to check balance through NSDL website

Step 1: Go to NSDL Portal

Step 2: Enter your PRAN account number along with User ID and Password to login.

Step 3: Enter the captcha code to proceed.

Step 4: Click on the option of holding statement in the transaction statement.

Check balance by SMS

Give a missed call to 9212993399 from your NPS mobile number. In response to this you will get an SMS. Through this, balance information will be available. You can also call 022-2499 3499 for NPS information.

Check balance on umang app

1. First download the UMANG app on your smartphone.

2. After login in it go to NPS

3. After switching to NPS choose your Central Record Keeping Agency (CRA).

4. After the page opens, select the option of current holding.

5. Enter your PRAN and Password

6. After completion of all process log in then you will be able to see your account balance.

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Pension fund regulator PFRDA has made important changes in the rules of National Pension Scheme (NPS) for government employees. Now the option of default scheme will be available in the NPS Tier-2 accounts of employees. With this, employees will be able to choose the Pension Fund Manager (PFM) and the range of returns in percentage for their investments. This will reduce investment risk in Tier-2 account and provide more profit opportunities.

The Pension Fund Regulator has recently issued a circular in this regard. According to this, the pension fund manager will invest their funds as per the options chosen by the account holders. The management of the default scheme fund has been entrusted to three pension fund managers. Other investment options like equity, corporate debt and government debt will also be available in Tier-2 account as before.

This will be the benefit: According to market experts, till now the option of default plan was available in NPS Tier-1 account. In this, the employee’s funds are managed by PFRDA on behalf of PFM. This facility was not available in Tier-2. The employee had to manage it himself, which created investment risk.

In the new system, investors who do not have much understanding of financial investments will be able to invest in Tier-2 accounts with the help of the default plan. As their understanding increases over time, they can make changes to their portfolio as per their financial goals and risk appetite.

What is NPS: NPS was started in January 2004 for government employees. In the year 2009, it was also opened to the private sector and common citizens. The responsibility of investing the amount deposited in the scheme is given to the registered pension fund managers by PFRDA. They invest the money in equities, government bonds, bonds and non-government and fixed income schemes.

Difference between Tier-1 and Tier-2 accounts

Two types of accounts can be opened under the NPS scheme. Tier-1 account is for pension, while Tier-2 account is like a voluntary savings account. Tier-2 account can be opened only if there is already a Tier-1 account. In the former account, the contribution of a government employee is on the lines of EPF. But in other accounts there is no limit. Tax exemption is available on Tier-1 account, but this exemption is not available on Tier-2 account. However, government employees can avail tax exemption in Tier-2 account subject to certain conditions.

You can withdraw money anytime: There are many restrictions on withdrawal from Tier-1 account. You can withdraw up to 25% of your contribution after 10 years of account opening for children’s education, marriage, treatment of serious illnesses and construction of first house, but there is no restriction on withdrawal in Tier-2 account. The member can withdraw the entire amount in lump sum at any time.

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Pension fund regulator PFRDA has eased rules for exit from National Pension Scheme (NPS). Under this, NPS members will be able to choose annuity¹/´pension plan and insurance company as per their need and choice at the time of withdrawal from the scheme. No extra fee will be charged from them for this.

PFRDA has recently issued a circular in this regard. The pension regulator has ordered the government, POPs and nodal officers of the National Pension System Trust to help NPS members choose pension plans according to their needs. With this, the beneficiaries will not have to face any kind of trouble further. The regulator has said that the annuity or pension plan selection should be based on the requirements and individual needs of the NPS members.

No additional charges: PFRDA has also clarified that the insurance company providing annuity or pension plan can charge only premium from NPS members and no other additional charges. NPS members are already paying taxes to the government, so they will not be charged any fees for other services.

This will be beneficial: Life insurance companies provide different annuity / pension plans based on the investment period and performance, which also have different annual interest rates and returns. Investors will be able to choose more profitable schemes for higher pension. Also, on the basis of market risk, they will be free to choose the pension plan.

What are the rules

If retired: After retirement at the age of 60 years, only 60% of the amount can be withdrawn from NPS in lump sum. It is tax free. The remaining 40 percent amount has to be invested in an annuity/pension plan, from which pension is received. These plans are provided by life insurance companies. However, if the total annuity corpus after retirement is less than or equal to five lakh rupees, the member can withdraw the entire amount.

In case of premature withdrawal

If an NPS member wants premature withdrawal before the age of 60 years, then he has to invest 80% of the total corpus in buying an annuity/pension plan. Only 20 percent of the amount can be withdrawn in lump sum. There is no compulsion to buy an annuity plan if the corpus at the time of premature withdrawal is equal to or less than Rs 2.5 lakh. Members can withdraw the full amount.

What is annuity / pension plan

After retirement, pension/annuity plans have to be bought from life insurance companies, which give pension to the customers on a monthly, quarterly, half-yearly or yearly basis, depending on their investment amount. The rate of interest is fixed, which is fixed at the time of investment.

The post Exit from NPS Rules: PFRDA has changed the rules for Exit from NPS – know all the details first appeared on Rightsofemployees.com.

Taking a very important step, the Center has directed all the State Governments to convert all those All India Service (AIS) employees from the National Pension Scheme (NPS) to the Old Pension Scheme (OPS). Those who are recruited through notification vacancies issued after December 22, 2003 and those who are covered under NPS when they join government service on or after January 1, 2004, are covered under the provisions of the old pension scheme. Will go It states that interested employees can avail this one-time option till November 30.

Orders will be issued to eligible employees to avail the old pension scheme by January 31, 2024 and thereafter their NPS accounts will be closed by March 31, 2024. Orders will be issued to eligible employees to avail the old pension scheme by January 31, 2024 and thereafter their NPS accounts will be closed by March 31, 2024. You will get this chance only once.

In a letter dated July 13 to the chief secretaries of all states and union territories, the Department of Personnel and Training said, “All India officers who are covered under NPS on joining service on or after January 1, 2004, they An option to come under the Old Pension Scheme (OPS) under 1958 may be given.”

It has also been said in this letter that IAS officers selected through Civil Services Examination 2003, Civil Services Examination 2004 and Indian Forest Service (IFS) Examination 2003 will come under this provision.

According to a letter, this step has been taken in response to the decisions of different courts and CAT benches. It said that it allowed government employees appointed on or after January 1, 2004, to extend the benefits of the old pension scheme. Employees will get a chance to join the old pension scheme only once. Till November 30, 2023, the officers who will not be able to apply for the benefit of old pension will continue to get the benefit of NPS as before.

The letter states that it is clarified that transfer from one service to another is subject to continuous service and technical resignation.

It also states that in accordance with these instructions, the option exercised by the members of the service shall be placed before the Government of the State to whose cadre the member of the service belongs.

It said, “If any clarification is required, a reference may be made to the Department of Personnel and Training in the case of members of the Indian Administrative Service, to the Ministry of Home Affairs in the case of members of the Indian Police Service and to the Ministry of Home Affairs in the case of members of the Indian Forest Service.” may be referred to the Ministry of Environment, Forest and Climate Change.”

It also states that if the member of service fulfills the conditions of coverage under AIS (DCRB) Rules, 1958 as per these directions, necessary orders in this regard will be issued by January 31, 2024.

Due to this, the NPS account of such member of service will be closed with effect from March 31, 2024. Members of the service who opt for the Old Pension Scheme under the AIS (DCRB) Rules, 1958 will be required to take membership of the General Provident Fund (GPF).

The Congress governments of Rajasthan, Chhattisgarh and Himachal Pradesh have already announced to implement the old pension scheme in the state. The Congress has also made OPS an important issue for the Karnataka assembly elections and has announced to implement it in Madhya Pradesh as well, if voted to power.

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However, now the Finance Ministry has issued a clarification in this matter. The Finance Ministry said that the committee constituted on the new pension scheme is currently in its deliberation phase and has not yet reached any conclusion.

In a tweet, the Finance Ministry said that several news reports stated that the government has made a proposal to fix a certain percentage of pension for employees. The Finance Ministry said, “These news reports are false.”

During the budget session, Union Finance Minister Nirmala Sitharaman had announced setting up of a committee headed by the Finance Secretary on pension issues. The statement said that this committee is currently in the process of deliberations and consultations with stakeholders. The committee has not yet reached any conclusion.

Earlier, news agency Reuters had said in a report quoting two sources that the government is considering a change in the rules of the New Pension Scheme (NPS). This change will be in such a way that the employees can get 40-45 percent of their last salary as pension for sure.

Explain that under the new pension scheme or National Pension Scheme (NPS), the employees have to contribute 10 percent of their basic salary and 14 percent to the government. The final payment to the employees depends on the returns that pension fund gets from the market. Pension funds invest mostly in debt schemes.

In contrast, in the old pension scheme, the employee did not have to make any contribution during his job and he was guaranteed 50 per cent of his last salary as pension after retirement.

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A committee was constituted by the Central Government under the chairmanship of the Finance Secretary to make changes in the National Pension Scheme ie NPS. On June 9, a meeting was held with the office bearers of the National Council of Staff Site CM.

old pension scheme should be restored

In the meeting, the committee was clearly told by the representative of the central government employees organization that apart from the old pension, the employees organization will not approve anything else. The only way to solve this problem is to abolish the unguaranteed NPS scheme and restore the old pension scheme.

Constitution of committee for amendment in NPS

In this case, the chairman of the committee assured that attention will be given to all the points of the memorandum given by the staff side. Along with this, whatever issues have been raised during the discussion, they will also be looked into. For the time being, a report is required. Therein an attempt will be made to address the concerns expressed by the staff side. Explain that the committee was formed by the government to amend the NPS.

Labor union demands

Here, in the meeting, the representative of the employees’ organization has given various arguments in support of its demands of the committee. The committee says that NPS should be abolished at all costs and the Guarantee Sudha Purani Pension Yojana should be restored.

Tell that after 2004 there has been a demand to withdraw the National Pension System applicable to Indian employees. The employees union demands that all the employees recruited after January 1, 2004 should be brought under the purview of the old pension scheme under the CCS Pension Rules, 1972. Reforms in NPS are not beneficial to the employees in any way and were never demanded by the employees.

The employees organization says that there is no stability in the National Pension Scheme and the employees, satisfied with the scheme, formed a committee of 4 members under the chairmanship of the regular secretary.

The NPS present in the committee is being reviewed. The responsibility has been given to find out whether there is a need to change its structure and functioning. Apart from the committee, the secretary of JCM attended the meeting. Apart from this, many other officials also attended the meeting.

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old pension scheme

A notification in this regard has already been issued recently through Himachal Pradesh Chief Secretary Prabodh Saxena. According to the notification “In view of the cabinet decision for implementation of the old pension scheme under the CCS (Pension) Rules 1972, the State Government has decided that the State Government employees (employee and employer share) covered under the National Pension System The contribution will be stopped from 1st April, 2023.”

Pension

This move will benefit both retired and serving employees and employees with more than 20 years of service will be entitled to pension of 50 per cent of basic pay and DA. At the same time, this step is likely to put a burden of Rs 1000 crore on the exchequer. Earlier this year, after the Himachal Pradesh government decided to restore OPS, Chief Minister Sukhwinder Singh Sukhu said after a cabinet meeting, “The aim of the government is to provide social security to all.

We have decided to implement OPS from the point of view of social security and humanity. The affordability of OPS expenditure will be achieved through financial discipline and reduction in expenses and we believe that there is nothing that cannot be done.”.

New Pension Scheme Vs Old Pension Scheme

Explain that the old pension scheme is based on the last salary earned by the employee. Whereas NPS is known as Contributory Pension System. Under OPS, the employee can withdraw 50 percent of the last drawn pay as pension after retirement. And under NPS, a person is allowed to withdraw 60 percent of the corpus accumulated during his working years at the time of retirement, which is tax-free. The remaining 40 percent is converted into an annuity product, which can currently provide a pension of 35 percent of the person’s last salary.

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The Union Cabinet on Friday increased the dearness allowance and dearness relief from 4 per cent to 42 per cent. This will benefit 47.58 lakh central government employees and 69.76 lakh pensioners. After the meeting of the Economic Affairs Committee of the Union Cabinet, Information and Broadcasting Minister Anurag Thakur told reporters that the increase in dearness allowance and dearness relief will affect the exchequer by Rs 12,815.60 crore annually.

Committee formed to review the new pension system

At present, the New Pension Scheme (NPS) is applicable in the country, which is also known as the New Pension System. Government employees have lodged protests many times regarding this pension scheme and have demanded old pension scheme i.e. Old Pension Scheme (OPS). Let us tell you that after this change, dearness allowance to central employees and additional installment of dearness relief to pensioners will be given from January 1, 2023. The increase in Dearness Allowance and Dearness Relief has been based on the approved formula, which is based on the recommendations of the Seventh Pay Commission.

Nirmala Sitharaman introduced the bill

In view of the demand of government employees, Union Finance Minister Nirmala Sitharaman presented a bill in Parliament on Friday, according to which a new committee is to be formed. It is the job of this committee to review the new pension system completely. The leadership of this committee has been given to the Union Finance Secretary.

When did the new pension system come

Let us tell you that this new pension scheme (NPS) was introduced in the year 2004, which replaced the old pension system ie OPS. Both the NPS and OPS schemes have some merits and there are some drawbacks as well. The government says that maintaining continuity in the old pension system puts a heavy burden on the government exchequer, keeping this in mind the new pension scheme was launched.

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This also includes minimum guaranteed returns. This is being discussed in the Finance Ministry. However, many state governments have already refused to adopt the New Pension Scheme and have retained the Old Pension Scheme.

Consider increasing the contribution

It is known that in the new pension scheme, there can be a plan for minimum guaranteed pension and the pensioner will also get additional income. It is also being considered to increase the contribution beyond 14%. Contribution will increase without burdening the exchequer. To increase the pension, it may be possible to invest more in Annuity. At present, 40% of the total fund is invested in annuity, which gives pension of about 35% of the last salary. However, being linked to the market does not guarantee it.

National Pension Scheme is in force since 2004

The National Pension Scheme (NPS) is effective in the country from April 1, 2004. The Old Pension Scheme (OPS) was abolished by the Vajpayee government in December 2003. In the old pension scheme, the pension was 50 percent of the last salary of the employee. The government used to pay its entire amount.

At the same time, NPS is for those employees who joined the government service after April 1, 2004. Employees contribute 10% of their salary towards pension. Apart from this, the state government contributes 14 per cent. The entire pension money is deposited with the pension regulator PFRDA, which invests it.

What is New Pension Scheme-NPS?

In the year 2004, the government started the National Pension Scheme. NPS gives investment approval to government employees. Under this, he can allow the investment of his money by making regular contributions to the pension account throughout his career. After retirement, a part of the pension amount is allowed to be withdrawn in lump sum. For the remaining amount, you can buy an annuity plan.

Annuity is a type of insurance product. A lump sum investment has to be made in this. It can be withdrawn monthly, quarterly or annually. He gets regular income till the death of the retired employee. At the same time, after death, the full money is received by the nominee.

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This scheme will give the benefit of pension after 60 years on your investment. This scheme gives you the benefit of both equity and debt. Experts believe that this scheme is a better option for this retirement planning and 10% annual return can be achieved in it and that too without taking much risk. According to tax and investment experts, if the NPS account holder makes a monthly contribution of Rs 12,500 from the age of 25, he can also get a tax rebate of Rs 1.5 lakh annually.

How much interest rate in long term

If you invest for a long period, then according to experts, you can get 10 percent interest or even more. However, for this, 60:40 equity loan ratio will have to be maintained. In such a situation, if an investor invests Rs 12 thousand 500 every month, then he can save tax up to Rs 1.5 on filing income tax return.

Monthly pension of Rs 95,707

If someone starts investing at the age of 25 and continues investing till the age of 35, then according to the NPS calculator, the account holder will get a maturity amount of Rs 2.87 crore and a monthly pension of about Rs 95,707 from the annuity.

How to get Rs 3 lakh

According to experts, to increase the pension amount, investment will have to be made for Systematic Withdrawal Plan. This will give a return of 7% to the investors. If the NPS account holder invests the NPS withdrawal amount of Rs 2.87 crore, then the monthly income from the investment will be Rs 1.99 lakh. In such a situation, a pension of about Rs 2.94 lakh will be received. However, you should invest in it only after understanding your risk and return.

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Senior Citizen Saving Scheme

People who are 60 years of age or older can take advantage of this scheme. People between 55 and 60 can also take advantage of this scheme. Up to Rs 30 lakh can be invested in this scheme. In this, tax benefit is given under section 80C of income tax. It is operated under the Small Savings Scheme.

National Pension Scheme

You can make regular investments in this scheme. After retirement, the employee can withdraw some money from this scheme and invest the rest of the money in buying corpus, after which you will be given a monthly pension. This is a market linked plan and has got an average annual return of 8 to 10 per cent. After maturity of five years, you can also withdraw money from it.

Pradhan Mantri Vaya Vandana Yojana

Under this scheme, along with pension, the benefit of insurance is also available. Under Senior Citizen LIC, they can invest in this scheme. Up to Rs 15 lakh can be invested in this. Although the last time to invest in this scheme is 31 March 2023. In this, an annual interest of 7.4 percent is given for 10 years.

Atal Pension Yojana

This is not a scheme for taxpayers. The remaining 25 to 40 people can invest. In this, contribution is also made by the government on your deposit amount for five years. After 60 years, you can take advantage of this scheme. Under this scheme, monthly pension of 1 thousand, 2 thousand, 3 thousand and 5000 rupees can be taken.

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National Pension Scheme: To make the new pension scheme attractive, the government can make many reforms and for that many such options are being considered so that the burden of pension on the government does not increase and at the same time the employees can get good pension.

There is also an option in which provision of guaranteed pension equal to 50 percent of the last monthly salary of the government employee is made at the time of retirement. It is believed that this option will not put much burden on the government.

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People consider it a good option in terms of retirement. In such a situation, NPS can prove to be a better option for emergency fund along with improving your retirement.

With this, if the NPS account holder needs money in an emergency, then he can withdraw money from the NPS account. There is a whole process for this too. Let us know all these important things related to the National Pension Scheme (NPS).

What is NPS?

In the National Pension System (NPS), the account holder gets the benefit of pension after retirement, in which both the employer and the employee contribute. With this, if the account holder needs an emergency fund before retirement, then you can withdraw 60% of the amount from the deposit on retirement. However, it is necessary to put 40% of this amount in pension.

How to withdraw money from NPS account?

You can withdraw funds in emergency from NPS account by following the steps given below.

• Log in to NPS Account- First log in to your NPS account. For this, search on Google by writing cra-nsdl. Now open the website of CRA NSDL. Here you are given two options to login. Subscribers and Nodel Officers are there. You have to select Subscribers.
• To login, the UserId will be your mobile number and the password you have created. If you have forgotten the ID password of NPS account, then you can also reset it.
• After logging in to the NPS account, you will now reach the home page of NSDL. Here you will see many options in the menu bar, now you have to select the option mentioned below. The sequence of option selection is Transect Online>Withdrawal>Partial Withdrawal Form Tier I.
• After this a notification will come, read it and click on OK. Now a new page will open, here PRAN number is given, click on submit there.
• 25% of the self-contribution amount can be withdrawn from the NPS account at one go.
• Your WITHDRAW AMOUNT will appear here. Check it and click on Submit.
• Before clicking on Confirm, do check your bank details. If the bank details are wrong then there will be problem in getting the money.
• Now you have been given a declaration for bank verification on next, in which Re 1 will be sent to your account. Check mark in the box and click on online bank a/c verification.
• After bank verification, you will get OTP. As soon as you click on Submit OTP. Your money request will be processed and your money will come into your account in 5 working days.

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After the announcement of the Finance Minister, especially middle class salary employees are looking for saving options to save tax. However, only those who have opted for the old tax regime will get tax relief through savings. If you have not done this, then from April 1, 2023, the new tax system will be implemented by default. In such a situation, apart from 80C, there are many options related to savings to save tax.

National Pension Scheme

National Pension Scheme (NPS) is a good option to save and save tax. Along with this, this system also secures your old age. Under section 80CCD (1B), if you invest in the National Pension Scheme, you get an additional tax rebate of up to Rs 50,000. If someone has crossed his annual investment limit of Rs 1.50 lakh, he can get tax exemption by investing up to Rs 50,000 in a financial year in NPS.

Tax exemption on home loan

Home loan is a good option to save tax. Tax exemption can be availed on home loan interest up to Rs 2 lakh. For this, the taxpayer will have to tell about the loan and its EMI and interest payment while filing the return.

Let us tell you that you will get this exemption only when you are living in that unit or that unit should be in your name. Under section 80TTA of Income Tax, you can get relief from TDS in interest up to Rs 10,000 in a financial year. This rule applies to all bank’s savings accounts. If you have more than one savings account, the taxpayer is advised to calculate the interest earned from all the accounts. At the same time, senior citizens can get tax exemption of up to Rs 50 thousand in interest under section 80TTB.

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The Pension Regulatory and Development Authority (PFRDA) has said in its proposal that private sector employees will also be given income tax exemption on contribution up to 24 per cent in NPS like government employees. At present, only government employees are given tax exemption of 24 percent.

According to media report, FRDA has said in its proposal sent to the Finance Ministry that corporate sector employees and professionals will also be given the benefit of tax rebate on the entire 24% amount on contribution to NPS. Presently such employees are given tax exemption only on contribution up to 20 per cent. Actually, under NPS, 10 per cent amount is deducted from the basic and DA of the employee, while the employer contributes 14 per cent to it.

From the financial year 2019-20, tax exemption is available on the entire 24 percent contribution made to the NPS account of central employees. In this, 10 percent of the employee and 14 percent of the employer remain. After this, from April 1, 2022, the scope of this income tax exemption was also extended to the employees of all the states. But, for private sector employees, this limit was limited to 20 per cent, which includes 10 per cent employee and 10 per cent employer’s contribution. Similarly, the scope of tax exemption for professionals is limited to only 20 per cent.

Exemption will remain like PF account

PFRDA Chairman Supratim Bandyopadhyay says that now that the central and state employees are being given tax exemption on the entire 14% contribution made by their employer, now the corporate sector employees will also get the benefit. must be given. Actually, with this step, the tax exemption available on NPS will reach equal to PF account. At present, 12 percent contribution is made by the employee in the PF account and 12 percent by the employer. In this way, tax exemption is given on the total amount of 24 percent.

Now tax rebate up to 50 thousand on pension also

PFRDA has now proposed to give a rebate of 50 thousand as standard deduction on the pension received under NPS. Actually, at present, the benefit of standard deduction of 50 thousand is given on salary during the job, while some employers give this benefit on pension also. But, pension under NPS is given by third party service provider. Therefore, this amount is taken as other income, on which the benefit of standard deduction is not available.

PFRDA chairman says that now the employees who buy annuity under NPS should also consider the income from it as part of their salary and get the benefit of standard deduction on that too. At present, the Finance Ministry is considering this proposal and a decision may be taken to extend 24% tax exemption to private sector employees on NPS.

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Remove the worry of financial planning and retirement. This is such a formula, which will create a fat fund not only on retirement. Rather, the tension of pension will also go away. There will be regular income and there will be no shortage of money at all. You can also use a trick for double benefit in the National Pension Scheme. Open it in the name of your wife, not yours. To understand what will be the benefit of this, it is necessary to read the whole news.

Decide yourself how much pension is needed in NPS

On opening an NPS account in the name of his wife, he will get a lump sum amount at the age of 60. Pension will also be given every month. This will bring a good amount as a regular income. The biggest advantage of NPS Account is that you can decide yourself how much pension you want every month.

NPS account will run in the name of wife till the age of 65

Another major advantage of opening an account in the name of the wife is that she gets the option of investing in this scheme for 65 years. Usually it matures at the age of 60. You can deposit money in it every month or annually. Investment in NPS starts from Rs 1,000.

NPS: How will a fund of more than ₹ 1 crore 11 lakh be prepared?

Suppose your wife’s age is 30 and you started NPS account with an investment of Rs 5000 every month. If the average return is 10% on this, then at the age of 60 the total amount will be Rs 1 crore 11 lakh 98 thousand 471. Out of this, the wife will get around 45 lakh rupees in one go. Now the turn of pension, here he will get pension as regular income of Rs 45,000 every month. They will continue to get this pension for life.

How to understand this calculation of NPS?

• Age – 30 years 
• Investment – 30 years
• Monthly contribution – Rs 5,000
• Estimated Return – 10%
• Total Fund – Rs 1,11,98,471 (on maturity)
• 44,79,388 Amount to buy an annuity plan of Rs.
• Rs 67,19,083 (Annuity rate 8%)
• Monthly pension – Rs 44,793.

Fund managers manage NPS 

NPS i.e. National Pension Scheme is the social security scheme of the Central Government. The special thing is that you have to invest money in the scheme, but professional fund managers will manage it. The central government gives responsibility to professional fund managers. That’s why complete security is guaranteed on the NPS account. Returns are not guaranteed simply because it is a market linked scheme. But, in the last few years, NPS has given an estimated return of 10-12 per cent. So the worry of retirement has gone away.

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But there are many such pension schemes from which individuals get benefits. Such as Old Age Pension Scheme, Widow Pension Scheme, and National Pension Scheme Scheme. But in all these pension schemes individuals have to wait for a very long time. Under all these pension schemes, the facility of pension is provided to the individuals at the age of 60 years.

But if we talk about the best pension scheme among all these pension schemes, then it can go to Saral Pension Yojana. You must be thinking that what is the name of the scheme, then we will provide you a brief description about it.

LIC Saral Pension Yojana

The name of this pension scheme brought by LIC is Saral Pension Yojana. Let us tell you that it comes in the list of a single premium pension plane. In this, a type of premium is required to be paid for taking the policy. As we have told above that in the coming pension schemes, pension facility is provided only after the age of 60 years. But there is no such circumstance under this pension scheme. Let us tell you that a great film has been launched by Life Insurance Corporation (LIC). Under this, by depositing the amount, you will be provided pension facility only from the age of 40 years.

Know more about Saral Pension Yojana

About this scheme of Life Insurance Corporation LIC, we have told you in the east that the name of this scheme is Saral Pension Yojana. It is also a single premium pension plan. Under which you need to pay premium only once at the time of taking the policy. Thereafter, you continue to get pension for the rest of your life. And on the death of the pensioner, the single premium amount is returned and given to his nominee.

Let us tell you that Saral Pension Yojana is an immediate annuity plan. Meaning you will start receiving pension only at the time of taking the policy. After taking this policy, the amount of pension you will start getting will be provided to you for the whole life.

How to take Saral Pension Yojana

Saral Pension Yojana 2022 Details: If you are interested in this pension scheme, then you can join this scheme mainly in two ways.

1. Single Life:- Under this, there is a policy in the name of any one. As long as the pensioner is alive, he continues to get pension under this scheme, but when he dies, the amount of his base premium is returned to his nominee.
2. Joint Life:- Under this, both the spouses have coverage. As long as the primary pensioners are alive, they will continue to get pension. After his death, his life partner will continue to get pension for the rest of his life. If he dies, his best premium is handed over to his nominee.

Know who can take advantage of Saral Pension Yojana

To take advantage of this scheme, the minimum age limit has been fixed at 40 years and the maximum age limit has been fixed at 80 years. Because it is a whole life policy under which the pensioner gets whole life pension till he is alive. Saral Pension Policy can be surrendered anytime after 6 months from the date of commencement.

Till when can I get pension

From when to take the pension, this decision would have been taken by the pensioner only. In this, four options are provided to the equality pension holders. in which

1. Pension can be taken every month
2. Can be received after every 3 months
3. Pension can be taken after every 6 months
4. Pension facility is available even after 12 months

You have to get pension by selecting any one of these options.

How much pension will be provided up to Rs.

To get pension, you have to take care of a special thing that how much you get a policy under this scheme. That is to say, you have to pay according to the amount of pension you want to get. If you want to take ₹ 1000 pension, ₹ 3000 for 3 months, ₹ 6000 for 6 months, and ₹ 12000 for 12 months is the minimum pension. There is no maximum limit for this.

If the age of the person is 40 years and he has deposited a single premium of ₹ 1000000, then he will be provided ₹ 50250 annually. And let us tell you that he will continue to receive this pension for life. If for any reason the person gets the situation to withdraw the amount in the middle, then the balance amount is returned to him after deducting 5%.

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That’s why it is always advised to start investing from the first day of the job. Today we are telling you about those 5 schemes, where you can invest and do your retirement planning . By investing in these schemes being run by the government, you will not have to worry about your old age.

Life Insurance Corporation of India

If you are planning for retirement and want to invest in a government and safe place, then you can invest in the Simple Pension Scheme of Life Insurance Corporation of India. There are many advantages of this scheme. In this, you can start taking pension from the age of 40, not 60. In this scheme, you just have to invest a lump sum amount and you can get pension for life. You can withdraw money from the policy at the time of critical illness. On surrendering the policy, 95% is returned to you. Apart from this, you can also take a loan on this scheme.

National Pension Scheme

If you want to invest in a tax-friendly scheme, then the National Pension Scheme can prove to be very useful for you. This scheme is also safe i.e. the money invested here will not be lost. You can invest in this scheme to live a life of peace and comfort at the time of retirement. In this scheme you will get a fixed pension. After paying premium continuously for 3 years, you can withdraw money from it. Only 25% of the total deposit amount can be withdrawn before maturity.

Atal Pension Yojana

Under the Atal Pension Yojana, on attaining the age of 60 years, a pension of Rs 1000 to Rs 5000 is available every month. In this, a person from 18 years to 40 years can invest in it. In this you can withdraw 100%. Under this scheme, the government contributes 50 per cent of the subscribers’ contribution or Rs 1000 every year, whichever is less.

Pradhan Mantri Vaya Vandana Yojana

If you want to invest money in a safe place, then you can think of investing in Pradhan Mantri Vaya Vandana Yojana. If you also want monthly pension after retirement sitting at home, then for this you will have to invest 15 lakh rupees under this scheme. Pension ranging from Rs 1,000 to Rs 10,000 is available in this scheme. Means if you have deposited Rs 15 lakh, then interest at the rate of 8% will be Rs 1.20 lakh in a year. Now you will get this amount monthly, quarterly, half-yearly or annually.

Senior Citizen Savings Scheme

Senior Citizen Savings Scheme is also a safe and government scheme. You can invest in this for 5 years. At present, this scheme is getting 7.4% returns every year. You can start investing in this scheme from Rs 1000. You have to invest in this scheme for at least 5 years and after that you can extend it further. This scheme is available to all people above 60 years of age.

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If you invest in National Pension Scheme (NPS) or Atal Pension Yojana (APY) keeping in mind the future of you and your family, then you must be fully updated about it. Changes have been made in both NPS and Atal Pension Yojana by Pension Fund Regulator PFRDA.

After the new change, now the subscribers associated with the scheme will be able to pay the contribution through UPI (UPI Payment System). In the information given by the pension fund regulator, it was told that if the subscriber pays his contribution before 9.30 am, then it will be considered as investment of the same day.

But the amount deposited in the account after 9.30 am will be counted in the next day’s investment. Till now the subscriber could send the contribution amount through IMPS / NEFT / RTGS (IMPS / NEFT / RTGS). But after increasing its scope, now UPI can also be done. Changes in Atal Pension Yojana also Atal Pension Yojana (APY) is for the employees working in the unorganized sector.

The subscribers of this scheme get a guaranteed minimum pension of Rs 1,000 to Rs 5,000 monthly after attaining the age of 60 years depending on their contribution. Changes have been made in the Atal Pension Yojana from last October 1.

According to the new rule, income tax payers will no longer be able to apply for the Atal Pension Yojana (APY). If you invest in National Pension Scheme (NPS) or Atal Pension Yojana (APY) keeping in mind the future of you and your family, then you must be fully updated about it. Changes have been made in both NPS and Atal Pension Yojana by Pension Fund Regulator PFRDA.

After the new change, now the subscribers associated with the scheme will be able to pay the contribution through UPI (UPI Payment System). In the information given by the pension fund regulator, it was told that if the subscriber pays his contribution before 9.30 am, then it will be considered as investment of the same day. But the amount deposited in the account after 9.30 am will be counted in the next day’s investment.

Till now the subscriber could send the contribution amount through IMPS / NEFT / RTGS (IMPS / NEFT / RTGS). But after increasing its scope, now UPI can also be done.

Changes in Atal Pension Yojana also

Atal Pension Yojana (APY) is for the employees working in the unorganized sector. The subscribers of this scheme get a guaranteed minimum pension of Rs 1,000 to Rs 5,000 monthly after attaining the age of 60 years depending on their contribution. Changes have been made in the Atal Pension Yojana from last October 1. According to the new rule, income tax payers will no longer be able to apply for the Atal Pension Yojana (APY).

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PFRDA has reduced the time limit for taking final payment from NPS. The Custodian of Pension Funds on behalf of PFRDA has made changes in the system interface of NPS. Under this, it has enhanced its information technology capabilities to reduce the time limit of various transactions.

Under this change, the withdrawal requests of the subscribers will be made on T+2 days instead of T+4. Here T means the day the shareholder requested. That is, after the request, it will take two days and that is, a total of 3 days. Earlier this work was done in five days.

Under the new system, the requests related to CRA will be settled on T+2 basis till 10:30 am. At the same time, the requests received from the stakeholders of Keffin Technologies Limited and CAMS CRA till 11 am will be settled on T+2 basis. Even before this, many changes have been made in the rules related to NPS.

Changes have been made in the e-nomination process of NPS. The new rule will come into effect from October 1. Under this, the nodal officer can accept or reject the application for e-nomination. If the Nodal Officer does not decide on the e-nomination within 30 days from the date of application, the request will be accepted through the Central Record Keeping System.

Earlier, the subscribers of NPS were required to fill an exit form on completion of the deadline. Along with this, it was also necessary to fill the form to buy an annuity plan in the life insurance company. But now the annuity plan can be applied for only through the exit form. So now there will be no need to fill the form.

NPS pensioners will now be able to submit a digital life certificate as well. It will depend on Aadhaar verification. This work can be done with FaceRD app, in which digital life certificate can be made by downloading the app in mobile.

Account holders of Tier-2 cities will no longer be able to deposit money in the NPS account by credit card. This rule has been implemented only last month. However, account holders of Tier-1 city can deposit money in the account by credit card.

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There is no risk in investing

We are talking about National Pension Scheme. This is a government scheme, which is specially designed to give benefit to the elderly. There is no risk in investing in this scheme. This scheme was started in January 2004 for government employees. Later in 2009 it was opened to all categories of people. Under this plan, you have to invest for a long period in your working life. In this scheme, you have to invest 40 percent of the amount in the annuity. From the amount of annuity, you get pension later.

This way you will get 20 thousand rupees pension

If you want to invest in this scheme, then you can start it with an investment of only Rs 1000. People in the age group of 18 to 70 years can take advantage of this scheme. If you invest 1000 rupees a month in this scheme at the age of 20, then till retirement you will have a total corpus of Rs 5.4 lakhs.

There will be 10 percent return on this, this will increase this investment to 1.05 crores. If 40 percent of the corpus is converted into a year, then this prize will be Rs 42.28 lakh. Accordingly, assuming 10% annual rate, you will get a pension of Rs 21,140 every month. Along with this, you will get a lump sum amount of about Rs 63.41 lakh.

You will get these benefits

• if you invest in NPS, then 60 percent of the amount will be tax free on final withdrawal.
• The contribution limit in NPS account is 14%.
• The amount invested in the purchase of annuity is also fully exempt from tax.
• Any NPS subscriber can claim tax deduction up to 10% of the gross income under section 80CCD(1) of the Income Tax Act, subject to an aggregate limit of Rs. Under section 80CCE, this limit is 1.5 lakhs.
• Subscriber can claim additional deduction up to Rs 50,000 under section 80CCE.

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IRDA said that the purpose of this decision is to make it easier to do business in the insurance industry and to protect the interests of policyholders. The regulator has given information about this by issuing a circular. Till now retirees included in NPS had to submit a withdrawal form with the Pension Fund Regulatory and Development Authority (PFRDA) and a resolution form with the insurance companies.

IRDA said that now the withdrawal form of NPS will be treated as the proposal form for purchase of pension. This will facilitate senior citizens as well as insurance companies. Who gives pension insurance companies are the only pension service providers. These are regulated by the insurance regulator. These are listed by PFRDA.

These companies give pension to NPS subscribers based on the amount deposited by them. There are managers handling the pension fund of PFRDA under NPS. They invest this fund in different options as per their discretion. As per the PFRDA norms, members will have to use at least 40 per cent of their accumulated pension corpus to purchase monthly pension products.

Apart from this, the remaining amount can be taken in a lump sum. What is NPS It is a long term investment scheme which is protected by the central government. In this, people are encouraged to invest so that they can get a good pension and lump sum amount after retirement. Only armed forces cannot invest in this scheme.

Talking about the returns, this is a market linked scheme, so the returns in it keep on changing, but on an average, investors get an annual return of 8-10 percent. You can also get tax exemption by investing in it. You can start investing in this till the age of 50. NPS matures at the age of 60 years.

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The pension fund regulator has clarified that the trail commission on contribution to NPS will be paid through direct remittance and will be similar to ENPS (contribution to commission through online mode). This will be done by the subscribers who have been connected by the POPs to the NPS system.

Giving information on Trail Commission, PFRDA said that in view of the significant efforts made for sourcing NPS accounts, this decision has been taken to support POPs. The rule for payment of trail commission to POPs has come into effect from 1st September.

The charge structure for payment of POPs was released by PFRDA on January 31. Only 0.20 per cent of the amount deposited in NPS will be charged as trail commission for de-remit contribution of subscribers associated with POPs. It can be a minimum of Rs 15 and a maximum of Rs 10,000. Applicable charges will be recovered by unit deduction.

PFRDA launched de-remit facility Recently PFRDA has started de-remit facility of NPS subscribers, through which all the subscribers can contribute to NPS as per their wish by creating a virtual ID. This Static Virtual ID is linked to PRAN.

De-remit is envisaged as a ‘customer centric measure’ to facilitate crediting of money from your savings account to PRAN through Net Banking/IMPS/UPI. If the trustee bank receives the contribution before 9.30 am, then due to this facility it will be reflected in the NAV on the same day. De-remit has become quite popular due to its ease of use, auto debit facility, change auto debit amount, stop auto debit etc.

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Know what changed?

Let us tell you that from now on, Point of Presence (PoP) will be given commission on opening NPS account. Banks, NBFCs and many other types of entities are included in POP. It is through these that people are registered in NBFCs. Along with this, many types of facilities are made available to the subscribers.

POP will get the benefit from September 1, 2022 i.e. from today, Rs 15 to Rs 10,000 will get commission. PFRDA has told that this step will also give a boost to POP. He makes a lot of efforts to open the NPS account of the customers.

Commission will be charged from customers According to the information given by PFRDA, POP will be given 0.20 percent commission in a given time period. Please tell that this commission will be taken from the customers only. This will be recovered by reducing the number of units he has invested in at fixed intervals.

How much is the pension fund If we talk about the pension fund present in the country, then it is Rs 35 lakh crore. Out of this, 22 percent i.e. a total of Rs 7.72 lakh crore is with NPS. At the same time, EPFO ​​manages 40 percent of the share.

Let us tell you that if the average age of the investor is 21 years and he invests Rs 2,000 in NPS every month, then you can get huge benefits. If you join NPS at the age of 21 and keep the investment target till the age of 60, then you will get the investment time till 39 years.

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After the order issued on Friday, now every month the officers will get an additional 30 thousand rupees. Also, they will be paid Rs 2 lakh or more 2.5 lakh as a lump sum amount of arrears. However, on one hand, orders have been issued to increase DA for IAS, IPS and IFS officers. At the same time, the employees will have to wait a little longer.

On Friday, orders have been issued to increase the dearness allowance of the officers of All India Service Madhya Pradesh in the General Administration Department. This order will be effective from the date of order of increase of DA of central employees.

The employees of Madhya Pradesh have also been approved dearness allowance at the rate of 34% from January 1, 2022. The order was issued by the Chief Secretary, Madhya Pradesh Government on 18 August.

In which it was said that according to the memorandum issued by the Ministry of Finance, Government of India, DA at the rate of 31% from July 1, 2021, while from January 1, 2022, at the rate of 34% to the IAS IPS IFS preparation officers working in the All India Services Madhya Pradesh cadre. will get the benefit. However, after this order, an additional burden of 30 crores will come on the state government.

According to the same seventh pay scale, this is the first time after the implementation from January 1, 2016, when the orders of dearness allowance have been issued separately for the officers of the All India Services, including the officers and employees of the state. On the other hand, if we talk about Madhya Pradesh, the total number of IPS IFS IAS officers in the state is more than one thousand.

Out of which 550 characters are such that have come into service after 2004. They will get its benefit in the National Pension Scheme deduction every month. Under this, Rs 3000 will be deducted from their salary every month, according to the deduction till now, the employer has to pay 14% while the employee has to pay 10% in NPS. Whereas in this case, the officers and employees of the state seem to be lagging behind in the matter of reduction in KNPS.

The employees will have to bear the loss of 33000 arrears and the officers up to Rs 1 lakh 27. If the DA is not paid as per the date of the center, the state government is getting its direct benefit.

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To provide social security to more citizens the Government of India has started the National Pension System.

Government of India established Pension Fund Regulatory and Development Authority (PFRDA)– External website that opens in a new window on 10^th October, 2003 to develop and regulate pension sector in the country. The National Pension System (NPS) was launched on 1st January, 2004 with the objective of providing retirement income to all the citizens. NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens.

Initially, NPS was introduced for the new government recruits (except armed forces). With effect from 1^st May, 2009, NPS has been provided for all citizens of the country including the unorganised sector workers on voluntary basis.

Additionally, to encourage people from the unorganised sector to voluntarily save for their retirement the Central Government launched a co-contributory pension scheme, ‘Swavalamban Scheme– External website that opens in a new window‘ in the Union Budget of 2010-11. Under Swavalamban Scheme– External website that opens in a new window, the government will contribute a sum of Rs.1,000 to each eligible NPS subscriber who contributes a minimum of Rs.1,000 and maximum Rs.12,000 per annum. This scheme is presently applicable upto F.Y.2016-17.

NPS offers following important features to help subscriber save for retirement:

• The subscriber will be allotted a unique Permanent Retirement Account Number (PRAN). This unique account number will remain the same for the rest of subscriber’s life. This unique PRAN can be used from any location in India.

PRAN will provide access to two personal accounts:

• • Tier I Account: This is a non-withdrawable account meant for savings for retirement.
  • Tier II Account: This is simply a voluntary savings facility. The subscriber is free to withdraw savings from this account whenever subscriber wishes. No tax benefit is available on this account.

Who can join NPS?

Any individual between the age of 18 and 60 years can open a pension account under NPS through eNPS using one of the following options.

Option 1 – Registration using Aadhaar

✔  You must have an ‘Aadhaar number’ (with a mobile number registered with Aadhaar)

✔  Your KYC in NPS will be done using Aadhaar through One Time Password (OTP) authentication

✔  OTP for the purpose of authentication will be sent to the mobile number registered with the Aadhaar

✔  Your demographic details and photo will be fetched from Aadhaar database and populated in online form

✔  You need to fill up all the mandatory details online

✔  You would be required to upload your scanned signature (in *.jpeg/*.jpg format having file size between 4kb – 12kb) as part of the registration process

✔  In case, you wish to replace the photo obtained from Aadhaar, you may upload a scanned photograph

✔  You will be routed to a payment gateway for making the payment towards your NPS account from Debit/ Credit card or Internet Banking

Option 2 – Registration using PAN (KYC verification by Bank)

✔  You must have a ‘Permanent Account Number’ (PAN)

✔  Bank account with the empanelled Bank for KYC verification for subscriber registration through eNPS

✔  Your KYC verification will be done by the Bank selected by you during the registration process.Name and address provided during registration should match with bank records for KYC verification. If the detail don’t match , the request is liable for rejection.In case of rejection of KYC by the selected Bank, applicant is requested to contact the Bank

✔  You need to fill up all the mandatory details online

✔  You need to upload your scanned photograph and signature in *.jpeg/*.jpg format having file size between 4kb – 12kb

✔  You will be routed to a payment gateway for making the payment towards your NPS account from Internet Banking

  In addition, NRI subscribers should,

✔  Select the Bank Account Status i.e., Non-Repatriable account or Repatriable account

✔  Provide the NRE/NRO bank account details and upload scanned copy of passport

✔  Select the preferred address for communication i.e., Overseas Address or Permanent Address (communication at overseas address would entail extra charges)

After Permanent Retirement Account Number (PRAN) is allotted, subscriber can use one of the following options:

Option 1 – eSign

For Tier I PRANs generated through Aadhaar, you have option to eSign the document by following the below mentioned steps:

✔  Select ‘eSign’ option in the eSign / Print & Courier page

✔  OTP for the purpose of authentication will be sent to your mobile number registered with the Aadhaar

✔  After Authentication of Aadhaar, Registration form will be successfully eSigned

✔  Once a document is eSigned, you need not send the physical copy of form to CRA

✔  eSign charge ₹ 5 plus GST

Option 2 – Print and Courier

✔  Select ‘Print & Courier’ option in the eSign / Print & Courier page

✔  You need to take a printout of the form, paste your photograph (please do not sign across the photograph) & affix signature

✔  You should sign on the block provided for signature

✔  The photograph should not be stapled or clipped to the form

✔  The form should be sent within 90 days from the date of allotment of PRAN to CRA at the following address or else the PRAN will be ‘frozen’ temporarily

• Central Recordkeeping Agency (eNPS)
• NSDL e-Governance Infrastructure Limited,
• 1st Floor, Times Tower,
• Kamala Mills Compound, Senapati Bapat Marg,
• Lower Parel, Mumbai – 400 013

Processing of subsequent contribution:

All existing subscribers (registered through both online and offline mode) can contribute in Tier I & Tier II account using ‘eNPS’. To contribute online, you need to

✔  Have an active Tier I / Tier II account

✔  Authenticate your PRAN using the OTP sent to your registered mobile number

✔  Pay through your Debit / Credit card or use Internet Banking option.

✔  POP Service Charges will be applicable on the contribution amount @ 0.10% (subject to minimum of ₹ 10 and maximum of ₹ 10,000 per transaction). This service charges will not be applicable for subscribers registered in eNPS through Aadhaar

Processing of APY Application:

Any individual between 18 -40 years (39 years 364 days) can initiate opening an Atal Pension Yojana account through eNPS platform using following process:

Registration using Aadhaar

✔  You must have an ‘Aadhaar number’ (with a mobile number registered with Aadhaar)

✔  Select the bank where you have an existing saving bank account

✔  Enter savings bank account number for selected bank

✔  OTP for the purpose of authentication will be sent to the mobile number registered with the Aadhaar

✔  You need to fill up all the mandatory details online

✔  APY PRAN allotment will be subject to verification of details and upload of subscriber registration file by bank.

✔  APY registration through eNPS, first contribution is mandatory. Kindly keep a sufficient balance in your savings bank account to avoid rejection.

eSign the document

Request for APY through Aadhaar, you have to eSign the document by following the below mentioned steps:

✔  Select ‘eSign’ option in the eSign.

✔  OTP for the purpose of authentication will be sent to your mobile number registered with the Aadhaar

✔  After Authentication of Aadhaar, Registration form will be successfully eSigned.

✔  Once a document is eSigned, you need not send the physical copy of form to CRA

✔  eSign charge ₹ 5 plus GST

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