New Delhi. There is good news for users of digital payment platform PhonePe. Actually, users will now be able to invest in National Pension System (NPS) through PhonePe as well. PhonePe on Wednesday announced the launch of contribution to NPS as a new savings category under Bharat Connect on its platform. Let us tell you that Bharat Connect was earlier known as Bharat Bill Payment System i.e. BBPS.

Earlier, users could contribute to their NPS accounts only through the websites of PFRDA, NSDL, CAMs, KFintech and banks.

Process to invest in NPS through PhonePe

• • First of all, open your PhonePe app.
  • Now click on ‘View All’ in the ‘Recharge & Pay Bills’ section on the home screen.
  • After this click on ‘NPS’ in the ‘Financial Services & Taxes’ section.
  • Now you will have to enter your 12 digit PRAN or 10 digit mobile number, date of birth, tier, and contribution amount.
  • After this, tick the terms and conditions checkbox and tap on confirm.
  • Now the NPS investment details and amount breakup will have to be reviewed.
  • After this, tap on ‘Proceed to Pay’.
  • Now select your preferred payment mode and make payment.

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National Pension System i.e. NPS is not only a good investment medium for retirement planning but it also proves helpful in saving income tax. Many people do not take full advantage of the tax benefits available under the National Pension System. Rather we would say that most of the people are not aware about it. If your employer contributes up to 10 percent of your basic salary and DA to the NPS corpus, then this amount will not come under the ambit of tax.

This money can be part of your total cost-to-company. This will reduce your tax liability significantly. You yourself can contribute up to 10 percent of your basic salary and DA to NPS. On this you can claim deduction under section 80CCD (1). Let us know in detail how NPS can help you in saving tax.

Tax benefits are available under these three sections

Let us tell you that apart from 10 percent contribution of base salary and DA under Section 80CCD (1), you can avail additional tax benefit of Rs 50,000 under Section 80CCD (1B). This is in addition to the 80C limit. But, it must be kept in mind that the deduction available under section 80CCD (1) comes under the total tax deduction limit of Rs 1.5 lakh under section 80C.

Apart from this, Section 80CCD (2) can help you a lot in tax-savings. For this, your employer will have to contribute up to 10 percent of your basic salary and DA to your NPS corpus. This limit of 10 percent is for people working in the private sector. For government employees this limit is 14 percent.

Benefit of Section 80CCD (2) in the new tax regime

It is important to know that the tax benefit available under section 80CCD (2) is available in both the new and old income tax regimes. If you are a private employee, you can ask your employer to contribute up to 10 percent of basic salary and DA to NPS. This money will be a part of your CTC, so there will be no additional burden on your employer. This can be understood with an example.

Suppose your basic salary and DA is Rs 50,000 every month. In such a situation, your employer can contribute Rs 5000 to your NPS every month. In this way he will contribute Rs 60,000 annually. This money will be taken out of your taxable salary.

These benefits will be available in the new regime

For information, let us tell you that in the new income tax regime, most of the deductions and exemptions are not available. But the benefit of deduction under section 80CCD (2) is available on contribution in NPS. The government has also given the benefit of standard deduction of Rs 50,000 in the new income tax regime from the financial year 2023-24. If you are employed then you can take advantage of this.

The post National Pension System: You can save a lot of tax by investing in NPS, understand the complete mathematics of investing. first appeared on Rightsofemployees.com.

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.

The post New Pension Plan! Big news: The government is preparing for major changes in the new pension scheme, know what is the plan? first appeared on Rightsofemployees.com.

NPS is a long term investment. But, it provides pension income for you after retirement. Unlike the old pension scheme, there is no guarantee of pension amount in NPS. The pension amount depends on your accumulated corpus. Despite this, this product guarantees you income after retirement.

The post National Pension Scheme: How to get Rs 50000 monthly pension, check rules details first appeared on Rightsofemployees.com.

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.

The post National Pension Scheme: Big change the rules from today regarding National Pension Account, check details immediately first appeared on Rightsofemployees.com.

National Pension Scheme Regulator, Pension Fund Regulatory and Development Authority has now changed the rules of National Pension Scheme (NPS). Now the Point of Presence (PoP) opening NPS account will get commission.

POPs include banks, NBFCs and other entities. They register people in NPS and provide many more facilities to the subscribers. From September 1, 2022, POP will get commission from Rs 15 to Rs 10 thousand on opening the account. PFRDA says that this move will give a boost to POPs as they put in a lot of effort and use their own resources to open an NPS account.

The move is aimed at providing compensation to the POPs, who are still incurring losses in terms of fees. PFRDA has clarified that this commission will be payable to the POP when the customer opts to send money directly from his account to the concerned entity under the ‘All Citizen Model’.

You will get 0.20% commission on investment amount

As per the new rules of PFRDA, it has been decided to give commission to the POPs supporting the expansion of NPS for a fixed period from 1st September 2022. The pension regulator said that transferring money directly from the bank account to the agency concerned for contribution to the National Pension System is similar to e-NPS.

The commission on this will be given to the POP. On direct money transfer, the POP will be given a commission of 0.20 percent over a certain period. The commission will be a minimum of Rs 15 and a maximum of Rs 10,000. This commission will be taken from the customer only. This will be recovered by reducing the number of units he has invested in at fixed intervals.

National Pension Scheme is a social security initiative by the Central Government. It was started in 2004 for government employees. But in 2009 it was opened to all classes. National Pension Scheme is a voluntary and long term investment scheme for retirement.

The post Big News: Government made big changes regarding the rules of National Pension Scheme, know here new rule first appeared on Rightsofemployees.com.