NEW DELHI — India’s new tax regime is gaining ground. Specifically, the Union Budget 2025 revised the slab rates to favor the middle class. While the old system had more perks, the new one is simpler. However, you can still save money if you use the right tools. Consequently, taxpayers can lower their bills by using five key provisions.

1. The ₹75,000 Standard Deduction

The easiest benefit for FY 2025-26 is the standard deduction. Notably, the limit for salaried staff and pensioners is now ₹75,000. Because this is fixed, you do not need to show receipts. Therefore, it lowers your taxable income without any paperwork.

2. Corporate NPS (Section 80CCD(2))

Your own NPS deposits no longer save tax here. But employer contributions are still a big win. Specifically, companies can now put up to 14% of your basic pay into NPS. Furthermore, this amount is not taxed in your hands. As a result, you build wealth for later while paying less tax now.

3. The ₹12 Lakh Rebate Rule

The 2025 Budget changed the Section 87A rebate. Now, if your taxable income is under ₹12 lakh, you pay zero tax. In fact, when you add the ₹75,000 deduction, you can earn ₹12.75 lakh and still pay nothing. Still, if you earn more, you must plan well to stay in this range.

4. Home Loan Interest on Rented Property

The new regime does not allow deductions for homes you live in. However, you can still claim interest for let-out properties. Specifically, Section 24 allows a cut of up to ₹2 lakh. Thus, this helps people who invest in rental real estate.

5. Retirement and Payout Perks

Some payouts stay tax-free when you retire. For instance, gratuity and leave encashment have high limits. Also, employer EPF funds are mostly exempt. In summary, the new system works best for those who use company-linked benefits.

FY 2025-26 New Regime Tax Slabs

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The post India’s 2026 Tax Guide: 5 Ways to Cut Your Bill Under the New Regime first appeared on Rightsofemployees.com.

The New Zero Tax Threshold for 2026

Recently, tax experts revealed a path to pay no tax on high salaries. Specifically, workers under the New Tax Regime can shield ₹14.66 lakh from the taxman. First, you must have a specific salary structure. Then, your employer must contribute to both retirement funds. In fact, Section 87A offers a full rebate if taxable income stays under ₹12 lakh. Therefore, the goal is to lower your taxable pay through smart deductions.

Now, look at the math for 2026. Standard deductions for salaried staff currently sit at ₹75,000. Next, add employer funds to the mix. These funds do not count toward your taxable total. As a result, a CTC of ₹14.66 lakh shrinks quickly. Still, you need your firm to cooperate with this plan.

How EPF and NPS Reduce Your Bill

First, ensure your basic salary is 50% of your total cost to company. Then, your boss can put 12% into your EPF account. This money is tax-free. For example, a basic pay of ₹7.32 lakh moves ₹87,900 into EPF. Later, apply the standard deduction of ₹75,000 to the remaining balance. Finally, use the NPS employer route for more gains.

Today, firms can put 14% of basic pay into your NPS. This moves about ₹1.02 lakh out of the tax zone. After these steps, your taxable income falls below the ₹12 lakh line. Thus, the Section 87A rebate wipes out your entire tax bill. In fact, this saves you up to ₹60,000 in cash.

Reality Check

Reality Check: The Finance Ministry calls the New Tax Regime “simple.” Still, reaching these zero-tax levels requires complex math. In 2025, many workers failed to update their salary structures in time. Therefore, they paid thousands in unnecessary taxes. Meanwhile, many private firms do not offer the 14% NPS contribution. Instead, they stick to basic EPF rules. Yet, the Ministry assumes everyone has access to these tools. This gap means the “tax-free” dream is only for a few.

The Loopholes

The Loopholes: High earners must watch the ₹7.5 lakh cap. This rule limits total tax-free employer funds. In fact, any amount over this cap faces a tax hit. Additionally, employee contributions to NPS do not count for deductions here. Only employer-paid funds qualify for this specific 2026 tax hack. Therefore, workers with low basic pay cannot hit the full ₹14.66 lakh limit.

What This Means for You

Recently, the government shifted more people to the new regime. Now, you must act fast to save money. First, check if your boss offers NPS benefits. If not, your tax-free limit drops to ₹13.56 lakh. Then, ask for a salary restructure before April 1, 2026. Indeed, a small change now saves a lot later.

Next Steps

Use your HR portal to check your CTC breakdown. Then, ask your finance team to add NPS employer contributions to your plan. Would you like me to create a sample salary breakdown for your specific income level?

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Fees for Government Sector (NPS and UPS)

For government employees, opening a new PRAN will now cost ₹18 for an e-PRAN kit and ₹40 for a physical PRAN card. The annual maintenance charge will be ₹100 per account. However, no fees will be charged for accounts with zero balances. There will be no additional fees for transactions.

Atal Pension Yojana (APY) and NPS-Lite

Customers in this category will have to pay Rs 15 to open a PRAN and Rs 15 for annual maintenance. Transaction fees will also be zero.

Fees for Private Sector (NPS and NPS Vatsalya)

The private sector, like the government sector, will be charged a fee of ₹18 for an e-PRAN kit and ₹40 for a physical PRAN card to open a PRAN. There will be no transaction fee.

Annual Maintenance Charge (AMC)

AMCs are divided into slabs based on the investment amount of the clients.

– No charges on zero balance accounts.

– Rs 100 on corpus of Rs 1 to Rs 2 lakh,

₹150 for amounts from ₹2,00,001 to ₹10 lakh

₹300 for amounts from ₹10,00,001 to ₹25 lakh

₹400 for amounts from ₹25,00,001 to ₹50 lakh

– A fee of Rs 500 will be charged on corpus exceeding Rs 50 lakh.

Important Guidelines

The PFRDA clarified that this new fee structure is a ceiling. Central recordkeeping agencies (CRAs) cannot charge more than this. However, they can negotiate with companies, customers, and points of presence (PoPs) to reduce the fees.

– AMC for private sector subscribers will be slab based and will be applicable only on Tier-I corpus.

– For government sector UPS customers, this charge will only apply during the accumulation phase. Separate charges may be issued later for pension disbursements.

Additionally, if CRAs introduce new services in the future, their fees will be determined based on actual costs, subject to PFRDA approval. All CRAs must clearly display their charges on their websites and mobile apps.

– PFRDA said that this amendment has been issued under Section 14 of the PFRDA Act, 2013 and also marks the completion of the five-year price discovery cycle prescribed under the CRA regulations.

The post NPS, UPS and Atal Pension Yojana fees will change from October 1 – Check Details first appeared on Rightsofemployees.com.

UPS vs NPS: The central government has taken a big decision related to pension, which will directly affect lakhs of employed people. If you are a central government employee and you have opted for the Unified Pension Scheme (UPS), then now you can switch to the National Pension System (NPS). The government gave this information by issuing a notification on Monday night, 25 August.

Important Update for Central Government Employees!

Government has now introduced one-time, one-way switch facility from #UnifiedPensionScheme (UPS) to National Pension System (NPS). Central government employees can switch to the UPS before September 30, 2025, for assured… pic.twitter.com/UjJJjM56S9

— PFRDA (@PFRDAOfficial) August 25, 2025

The Finance Ministry has clarified that this facility will be available only once and one-way. That is, if you switch from UPS to NPS, you will not be able to go back to UPS again. This switch will be available only for those employees who have chosen UPS.

According to government data, as of July 20, about 31,555 central employees have opted for UPS and the last date for enrollment under this scheme is September 30, 2025, which will provide guaranteed pension and many benefits. The option to switch from UPS to NPS is also available till September 30.

When can we make the switch?
Employees can choose this option up to one year before the date of retirement or three months before retirement in case of voluntary retirement. If the switch is not made during this period, the employees will remain in UPS by default.

Who will not get this facility?
If an employee has been removed, dismissed or forcibly retired, or disciplinary proceedings are pending against him, he will not be able to avail this facility.

Know the advantages and disadvantages of NPS?
Once the employees leave UPS and join NPS, they will no longer be eligible for the fixed pension and guaranteed benefits of UPS. Instead, they will be able to invest and withdraw pension as per NPS rules.

An additional 4% contribution from the government will also be added to the employee’s NPS account. Pension will be decided based on the amount deposited at the time of retirement.

Let us tell you that the government has ordered all the ministries and departments to ensure that this information is conveyed to their employees so that they can take the right decision in time.

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Finance Minister Nirmala Sitharaman, while responding to a question in the Lok Sabha, said that the government has distanced itself from OPS due to its unsustainable fiscal liability on the exchequer. Let us tell you that NPS is a fixed contribution-based scheme which was launched for central government employees (except armed forces) joining service on or after January 1, 2004.

UPS option for employees covered under NPS

The Finance Minister said that with a view to improving the pensionary benefits of such employees, a Committee was constituted under the Chairmanship of the then Finance Secretary to suggest measures for amendments in the NPS. Based on the Committee’s deliberations with stakeholders, Unified Pension Scheme (UPS) has been introduced as an option under NPS with a view to providing assured post-retirement benefits to Central Government employees covered under NPS, she said.

The government introduced UPS as an option in January

Nirmala Sitharaman said that the features of UPS, including the definition of family, have been designed in such a way that fixed payments are ensured and at the same time financial stability of the fund is maintained. Further, she said that Government servants opting for UPS under NPS will also be eligible for the option to receive benefits under CCS (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023, in the event of death of the Government servant during service or his retirement on the ground of invalidity or disability. She said that UPS has been introduced as an option under NPS by the Government through a notification dated January 24, 2025.

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The Modi government has made another big announcement in the interest of central employees. Now all the tax benefits available under the National Pension System (NPS) will also be applicable on the Unified Pension Scheme (UPS). Through this, the government is trying to make UPS more attractive for central employees.

UPS is an alternative to NPS

Earlier this year, the Integrated Pension Scheme was introduced for central employees from April 1, 2025. It has been introduced as an option under the NPS. Existing government employees who are already under NPS have also been given a one-time option to switch to UPS. That is to say, it is not mandatory for central employees enrolled under NPS.

what did the government say

According to the information given by the Finance Ministry, employees choosing UPS will get all the tax benefits that are available under NPS. This includes TDS and other tax benefits, which make this scheme more financially attractive. This decision brings parity between the two schemes and gives a level playing field to employees choosing UPS instead of the traditional NPS.

Features of Integrated Pension Scheme

Unified Pension Scheme (UPS) provides a guaranteed pension. In this, the government gives 18.5 percent of the employee’s basic salary and dearness allowance. At the same time, the employee contributes 10 percent. This scheme has been introduced to replace NPS for new employees of the Central Government and as an alternative to NPS for existing employees. Talking about NPS, it is a retirement benefit scheme launched by the Government of India to provide regular income facility after retirement for all the subscribers.

Deadline to choose the option is 30 September

Recently, the government extended the deadline for employees to exercise their option under UPS by three months to September 30. Earlier, eligible employees, including existing government employees, retired employees and spouses of deceased retired employees, had to exercise their option under UPS by June 30, 2025.

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The post Good News: All tax benefits available under NPS will also be applicable to Unified Pension Scheme (UPS). Check Details first appeared on Rightsofemployees.com.

Last year, a guaranteed pension scheme Unified Pension Scheme (UPS) was started for employees in 2024, which was first implemented for central employees and now the state of Haryana has also announced to give its benefits to its employees.

The Haryana government has decided that about 2 lakh government employees in their state will be given the option to choose UPS. This decision has been taken in the Haryana Cabinet meeting chaired by Chief Minister Naib Singh Saini, which will be effective from August 1, 2025. This means that the employees of the state will be able to choose the option of UPS after August 1 and their contribution made to NPS till now will be transferred to UPS.

This historic step will benefit more than two lakh state government employees appointed on or after January 1, 2006 with guaranteed pension under the scheme

.The objective of this scheme, which is being implemented on the recommendation of the state cabinet, is to ensure assured minimum pension and family pension to government employees. A state government employee who opts for the Integrated Pension Scheme will get 50 per cent of the average basic salary received during the 12 months before retirement as pension, provided the employee has completed 25 years of service.

The pension rule in UPS depends on the service period of the employees. If an employee retires after completing 10 or more years of service, he will get a minimum guaranteed pension of Rs 10,000 per month. However, those who complete

25 years or more of service will be given 50 percent pension. In case of death of the pensioner, his family will get 60 percent of the last pension amount.

The benefit of dearness relief will be available

Dearness Relief (DR) will be applicable on both assured pension payment and family pension. Dearness relief will be calculated in the same way as dearness allowance (DA) applicable to serving employees. However, dearness relief will be payable only when pension payment starts. This means that not only the retired employee will get the benefit of dearness relief on pension, his family will also be given its benefit.

Lump sum money will also be given on retirement

At the time of retirement, the employee will also be allowed a lump sum payment, which will be 10 percent of the monthly emoluments (basic salary and DA) for every six months of his service. This means that whatever salary the employee gets in 6 months, 10 percent of it will be added for the lump sum amount. In this way, the amount will keep getting added on a half-yearly basis throughout the service period, which will be given to the employee as a lump sum at the time of retirement. This lump sum amount will not affect the assured pension payment.

How much burden on the state government

Under the current National Pension System (NPS), employees contribute 10 percent, while the state government contributes 14 percent. With the implementation of UPS, the state government’s contribution will increase to 18.5 percent. This means that the government will have to contribute 4.5 percent more than each employee’s share. In this way, the burden on the Haryana government treasury will increase by Rs 50 crore every month or Rs 600 crore annually.

The post Haryana government has announced to implement UPS from August 1. Details Here first appeared on Rightsofemployees.com.

What is NPS?

National Pension Scheme (NPS) is a government-run, market-linked investment scheme, open to all Indian citizens between the ages of 18 and 70, whether you are salaried or self-employed. In this, you can divide the investment into shares, government bonds, corporate bonds or other options as per your choice.

This scheme gives the investor the freedom to choose the fund manager and asset allocation of his choice. If you are young and investing for a long term, you can get better returns by investing up to 75 percent in equity through Active Choice. Its average annual return is considered to be 8 percent to 12 percent.

What is VPF?

VPF i.e. Voluntary Provident Fund is an extension of EPF (Employees Provident Fund). It is available only to salaried people who are already registered with EPF. In this, the employee can contribute up to 100 percent of his basic salary and dearness allowance.

The returns of VPF are stable, which is around 8 percent to 8.5 percent per annum and it is a fully government guaranteed scheme. Its money is managed by EPFO ​​(Employees Provident Fund Organisation), which makes the risk zero.

Tax and withdrawal benefits

Both NPS and VPF are tax-free, but NPS offers an additional deduction of Rs 50,000 under section 80CCD (1B). On the other hand, if you invest in VPF for 5 consecutive years, the interest and maturity amount become tax-free.

VPF is more flexible in terms of withdrawal, you can withdraw money after 5 years if required. On the other hand, in NPS, the investment remains locked till the age of 60 and it is mandatory to take at least 40 percent of the amount annually (monthly pension) on maturity.

Who is better for?

NPS: If you are running your own business or want high returns over the long term while working, NPS is a better option. It provides tax planning as well as retirement security.

VPF: If you want to avoid risk and prefer a stable, government-guaranteed return, VPF would be right for you.

Some people can also avail both the stability scheme from VPF and the growth scheme from NPS.

In simple words, if you are young and want to invest for a long term, NPS may be better for you. But if you do not want to take much risk and prefer safety, then you can opt for VPF.

The post Is NPS or VPF best for retirement planning? Read full information first appeared on Rightsofemployees.com.

What will government employees get

According to the scheme, a retired employee opting for UPS will get a lump sum payment of one-tenth of the last basic salary and dearness allowance thereon for every completed six months of service. Also, the monthly top-up amount under NPS is calculated by deducting the pension amount received under NPS from the admissible UPS payment and dearness relief (DR). It said that retired employees will also be paid simple interest as per the applicable PPF rates.

The last date for claiming by such employees or their spouses is June 30, 2025. Let us tell you that the Finance Ministry had notified the Unified Pension Scheme (UPS) in January, which promises a pension equal to 50 per cent of the average basic salary received in the last 12 months before retirement.

For which central employees is UPS

UPS will be applicable to central government employees who are covered under the National Pension System and who opt for it. According to the notification, the rate of fully assured payment will be 50 per cent of the average basic pay of the 12 months immediately preceding retirement. This gave 23 lakh government employees the option to choose between UPS and NPS. NPS was implemented on January 1, 2004.

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In the calculator, you have to provide information about your date of birth, date of joining the job, retirement age, monthly basic salary, annual salary increment, etc. You can use this calculator by visiting https://npstrust.org.in/ups-calculator .

Information given by the Department of Financial Services

The Department of Financial Services on Tuesday said that government employees can calculate their pension estimate using the Unified Pension Scheme (UPS) Calculator. The Department of Financial Services (DFS) under the Finance Ministry wrote on social media platform ‘X’ that the NPS Trust has introduced the Unified Pension Scheme Calculator.

This calculator provides pension estimates to both NPS (National Pension System) and UPS customers. The department said that this calculator will help shareholders choose the right pension scheme after careful consideration.

Fixed pension will be available under UPS

Considering the demand of government employees, the government had decided to launch the Unified Pension Scheme (UPS). Under this, there is a provision to provide 50 percent of the average basic salary received in the 12 months before retirement as assured pension. PFRDA had said in a statement that the rules related to UPS have come into effect from April 1, 2025. Let us tell you that NPS was implemented on January 1, 2004. The Union Cabinet had approved the launch of UPS on August 24, 2024.

Under the old pension scheme (OPS) implemented before January 2004, employees used to get 50 per cent of their last basic salary of their tenure as pension. Unlike OPS, in UPS, employees have to contribute 10 per cent of their basic salary and dearness allowance, while the employer (Central Government) contribution will be 18.5 per cent. However, the final payout depends on the market returns on the fund, which is mostly invested in government bonds.

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Investors who have invested in these investment options need not worry. Experts say that even if you have invested in these investments, you should review them once. The reason for this is that if there is any kind of shortfall in the investment, then investment can be made till March 31 to make up for it. It has to be kept in mind that deduction on these investments is allowed only in the old regime of income tax.

Deduction on investment up to Rs 1.5 lakh under section 80C

In the old regime of income tax, under section 80C of the Income Tax Act, 1961, it is allowed to claim deduction of up to Rs 1.5 lakh in a financial year. About a dozen investment options come under this section. These include PPF, SSY, NPS, ELSS etc. Deduction can be claimed by investing in any one of these schemes or in more than one scheme. But, it has to be kept in mind that whether you invest in one scheme or more than one scheme, you can claim a maximum deduction of up to Rs 1.5 lakh in a financial year.

Deduction on health insurance premium under section 80D

If you have not bought health insurance, you can buy it till 31st March. This will enable you to claim deduction on its premium while filing income tax return for this financial year. If you buy health insurance after 31st March, you will not be able to claim deduction on its premium while filing return for this financial year. A person can buy a health policy for himself and his family and claim a maximum deduction of Rs 25,000 on its premium. If your age is more than 60 years, you can claim a deduction of Rs 50,000. Apart from this, a deduction of Rs 50,000 can also be claimed on buying a separate health policy for elderly parents.

Be sure to keep these things in mind while investing

You have to keep in mind that the purpose of investment should not be just tax-savings. You have to invest keeping in mind your financial goals. If you can take a little risk, then you can invest in the tax scheme of mutual funds. This scheme is also called ELSS. ELSS has the highest return among tax-saving investment options. It has a lock-in period of three years which is the shortest lock-in period among tax-saving investment options. If you cannot take risk, then you can invest in bank tax-savings FD or PPF. But, it has to be kept in mind that while the lock-in period in bank tax-savings FD is 5 years, PPF is a long-term investment. It matures after 15 years.

The post You can invest in PPF, SSY, ELSS, NPS for tax-savings till March 31 first appeared on Rightsofemployees.com.

National Pension System (NPS) is a government scheme that provides financial security after retirement. In this, people can create their pension fund by investing regularly and can also avail many benefits like tax exemption.

NPS account holders can withdraw money after retirement based on the amount deposited and the returns received on it. Apart from this, they can check the balance. They can manage the savings and increase the investment amount whenever they want.

What is NPS statement?

NPS Statement, also known as Statement of Transactions (SOT), is a document that contains a record of all the transactions related to your account. It includes.

• Investment details
• Full account status
• Information on withdrawal of money i.e. redemption
• Account Balance (Holding Value)

According to the NPS Trust, once every year its physical copy is sent to the registered address and the soft copy is also available through email.

How to download NPS statement in physical copy?

If you want to download NPS statement online, follow the steps given below.

• Visit the official website of NSDL.
• Login with username and password.
• Enter the captcha code and click on Proceed.
• Go to Transaction Statement and select Holding Statement.
• The account balance will be displayed on the screen. To download the complete statement, select Transaction Statement and click on Download button.
• Download NPS statement from mobile app
• You can also download NPS statement from the mobile app.
• Download the NPS app from Google Play Store or Apple Store.
• Enter 12 digit NPS User ID and reset password with OTP.
• After login, you will get the option to download transaction statement of Tier 1 and Tier 2 accounts.

Why is NPS statement necessary?

• Complete information about account transactions is available.
• This is an important document for tax savings.
• Helps in tracking investments and financial planning.

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The post NPS: You can download National Pension System statement online, know how first appeared on Rightsofemployees.com.

For your information, let us tell you that no change has been made in the income tax slab in the new bill, nor is any amendment proposed in the capital gains tax. The main objective of this bill is to simplify the language of tax related rules, so that it becomes easier for the common man to understand and implement it.

However, there is a big change that you should be aware of. If you pay tax by choosing the old tax regime, then you will be well aware of the various tax saving options under Section 80C. Investments like Equity-Linked Savings Scheme (ELSS), Public Provident Fund (PPF), life insurance premium, National Pension System (NPS), and tax-saver deposits come under this section. All these options get tax exemption of up to Rs 1.5 lakh.

Provisions of 80C now in 123

There has been a big change regarding 80C in the new bill. All the exemptions available under 80C will now come under section 123. According to this section, “Any individual or Hindu Undivided Family (HUF) will get exemption on the amount paid or deposited in the tax year, which will be equal to the total of the amounts given in Schedule XV, but this exemption will not exceed Rs 1.5 lakh.”

“Section 123 in the new Income Tax Bill is in line with Section 80C of the current Income Tax Act 1961. This should be read along with Schedule XV, which is part of the bill and gives a detailed description of various tax saving options under Section 80C.”

What has changed in the new bill?

This new Income Tax Bill is 622 pages long and contains 536 sections. Whereas, the current Income Tax Act has 298 sections in 823 pages. The new bill has a section on every section of the current Income Tax Act, except those sections which have become irrelevant now.

According to Ajay Rotti, founder of Tax Compass, “The Income Tax Act of 1961 contains sections 80, 80C, 80D, 80E etc. The last section number in the current Income Tax Act is 298. But the new bill has re-numbered the sections, which may increase the number of sections to more than 500. However, overall this bill simplifies the tax laws.”

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The post New Tax Bill: Govt has abolished 80C, now how to get the benefit of Rs 1.5 lakh through ELSS, PPF, NPS? first appeared on Rightsofemployees.com.

About 50 percent of the people involved in the study believed that their savings would barely last for 10 years after retirement. About 31 people said that they do not know how much money they will need after retirement and how big their retirement fund should be. However, 44 percent of the people believed that retirement planning should start before the age of 35.

Scheme of the government

CEO of Max Life Pension Fund Management, Ranbir Singh Dhariwal said that NPS can prove to be very helpful in retirement planning. He said that awareness about NPS is increasing among people. In the last three years, awareness about it has increased from 59 percent to 70 percent. In tier 2 cities, it is 78 percent. He said that there are many options in NPS, which give an opportunity to create good wealth in the long term. This is a government scheme, so it is easy to trust it.

Great returns in the long term

About 90 percent of the people involved in the study believed that NPS is a safe and reliable option for retirement planning. Dhariwal said that a major feature of NPS is that it is the lowest cost retirement scheme in the market. This means that most of the subscriber’s investment money is used to create a good fund in the long term. Due to being linked to the market, its returns are very good in the long term. In this, the subscriber can choose the option according to his risk taking capacity.

Withdrawal facility when needed

NPS is also attractive in terms of liquidity. The subscriber can withdraw 25% of the fund three times if he needs money. In this way, it is like an emergency fund for the subscribers. It also gives the subscribers an opportunity to do tax savings. This is the only investment product in which investment is allowed for deduction even in the new income tax regime. Self-employed people along with employed people are allowed to invest in NPS. The NPS account can be kept active by investing at least Rs 1,000.

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The post NPS is the best investment scheme for retirement because of these three features first appeared on Rightsofemployees.com.

Are thinking about where and in which scheme it will be safe to invest, then this news is for you. Today we are going to tell you about investing in the NPS scheme run by the government, through which you will get a pension of Rs 1 lakh after retirement. Let us know what is its calculation.

NPS scheme is a government retirement and savings scheme. The amount of money you invest through this scheme will be the pension you will get after retirement. Here we will tell you how you should invest from what age and for what period so that you can get a monthly pension of Rs 1 lakh after 60 years.

When will the scheme start

We assume that you are investing under this scheme after the age of 25 and you invest till the age of 60 and you are getting 12% annual interest on that investment. Now let us see how much to invest.

Investment plan

If you want a monthly pension of Rs 1 lakh after retirement, then you will have to invest accordingly. You will have to invest about Rs 7,750 every month for 35 years from 25 years to 60 years, with the expectation of a return of 12 percent.

When you invest around Rs 7,750 every month for 35 years, your total investment will be around Rs 5 crore. After this, about 40 percent of the investment will have to be bought in annuity scheme at an estimated interest rate of 6 percent, after which you will easily get a pension of Rs 1 lakh per month through this investment.

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All central government employees covered under the National Pension System (NPS) will be required to choose their terminal benefits at the time of joining the service. This information has been given in an office memorandum issued on October 26 by the Department of Pension and Pensioners Welfare, Ministry of Personnel and Pension.

According to this order, employees will have to fill Form 1 to decide whether they will get benefits under NPS or the old pension scheme in case of their death, disability or incapacity.

Using Form

1, employees can decide whether they will be given pension benefits under NPS or under the old pension system (Central Civil Services Pension Rules).

Mandatory to submit at the time of joining the service

This form will be required to be submitted at the time of joining the service. Also, employees who are already in service and are covered under NPS will also have to compulsorily choose this option.

Along with Form 1, all employees are required to submit Form 2 also to their office head, which contains family details.

Departments and ministries were reminded

Earlier also, employees were instructed to complete this process, but now it has been observed that many departments and ministries have not followed it completely till now.

Strict instructions for compliance

This order comes under the Central Civil Services (Implementation of NPS) Rules, 2021 and all employees have been instructed once again to submit Form 1 and Form 2 as soon as possible. Full compliance with this process will ensure that all employees get proper pension benefits and the rules are strictly followed.

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Central government employees covered under the National Pension System (NPS) can now opt for voluntary retirement (VRS) after completing 20 years of service. They will get the same benefits of NPS as they get on regular retirement.

Under NPS, you can take VRS after 20 years of service

The pensioners’ welfare department has issued new rules for VRS. According to these, employees who have completed 20 years of service can take voluntary retirement by giving a written notice of three months. Employees have to submit the VRS application in writing to the appointing authority.

A notice period of three months will have to be given

If the appointing authority does not raise any objection within a period of three months, the retirement will be considered approved. If the employee wants to retire with a notice period of less than three months, he can appeal for it in writing. The appointing authority will consider it and if administrative work is not affected, it can be approved.

More flexibility

After giving notice of retirement, the employee will not be able to withdraw it unless special permission is obtained. Request for withdrawal of notice must be made at least 15 days in advance. The new rules will give employees more flexibility on VRS scheme and an opportunity for future planning. They will be able to decide the right time of retirement themselves.

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By investing in it, a large fund is created in the long term, which is very useful after retirement. Along with this, there is also a regular income in the form of pension every month.

But, these benefits are available only after the subscriber turns 60 years old. That is why many people do not invest in NPS , because they think that the money deposited in NPS will not be of any use to them if they need money in between. But, this is not true. Withdrawal of money from NPS is allowed before the subscriber turns 60 years old. Let us know what are the terms and conditions for this.

1. Partial Withdrawal

The subscriber is allowed to withdraw some money only after three years of opening the NPS account. The condition is that the subscriber can withdraw 25 percent of his total contribution. This will not include the employer’s contribution. PFRDA has allowed withdrawal of 25 percent contribution in certain situations.

-Higher Education: The subscriber can withdraw money for his or his children’s higher education.

-Marriage: The subscriber can withdraw this money for his or his children’s marriage.

-To buy a house: If the subscriber does not own a house then he can withdraw the money to buy a house.

-For treatment: The subscriber can withdraw money for the treatment of himself, his wife/husband or children. But, this money can be withdrawn only for the treatment of serious diseases like cancer, kidney and heart disease.

It is important to note that a subscriber is allowed three partial withdrawals during the NPS tenure. There should be a gap of at least 5 years between one withdrawal and another.

2. Premature exit (withdrawal before the age of 60)

If for any reason a subscriber wants to withdraw money from NPS before the age of 60, then he can withdraw the money after 10 years of opening the account. But, there are some conditions for this.

-80% of the corpus should be used to buy an annuity. This annuity will give you pension every month.

-It is allowed to withdraw 20% of the corpus i.e. total funds in lump sum.

This means that if the subscriber wants to withdraw his money after 10 years, he will have to use 80% of the total fund created to buy an annuity. This will give him a pension every month, which is the main purpose of investing in NPS.

3. Exit on death before 60 years

If the subscriber dies before the age of 60, then his nominee or legal heir can withdraw the entire amount deposited in NPS in lump sum. In such a situation, there is no need to buy annuity. This way the subscriber’s family gets the entire money in lump sum.

4. How much tax will be charged?

It is important to understand the tax rules applicable on premature withdrawal of money. Partial withdrawal i.e. up to 25% of NPS corpus is tax-free. If the subscriber wants to withdraw the entire amount before the stipulated time, then 20% of the lump sum amount will be taxed. Keep in mind that in case of premature withdrawal of the entire amount, only 20% of the money is allowed as lump sum withdrawal. You will have to buy annuity with the remaining money. The pension received from the annuity will be taxed as per the subscriber’s income tax slab.

From the above rules for withdrawal before attaining the age of 60, it is clear that PFRDA has allowed the subscriber to withdraw money if necessary. But, it has also kept in mind that the subscriber’s main motive for investing in NPS should be to get a regulated income after retirement.

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Retirement planning is not a one day job. The sooner you start, the more you will benefit. An option like NPS can help you create a big fund for retirement by saving a little every month. Here we will understand how much investment in NPS at the age of 35 can get you a pension of Rs 2 lakh every month after the age of 60.

NPS is a type of retirement fund. You invest in it every month. You can invest in equity, corporate debt, government bonds and other options as per your choice. After the age of 60, you can withdraw a lump sum amount and get pension every month from the remaining amount.

The thing to keep in mind is that the pension received from NPS depends on how much money you have deposited and what is the interest rate at the time of retirement.

Let’s understand with an example…

Suppose you are 35 years old and want to invest in NPS for the next 25 years. Your target is to get a pension of Rs 2 lakh per month after the age of 60. For this, you will have to deposit a total of Rs 2.77 crore in NPS by the age of 60. This calculation is based on the assumption that you will get an average annual return of 10% on your investment for 20 years.

As per the rules of NPS, you have to use 40% of your total accumulated amount to buy an annuity plan. This means that you have to buy an annuity plan with Rs 1.11 crore at the time of retirement. You will be left with a lump sum amount of Rs 1.66 crore.

Suppose you get 6% annual return from annuity plan. So an annuity plan of Rs 1.11 crore will give you a pension of around Rs 60,648 every month.

You can invest the remaining Rs 1.66 crore in a good hybrid mutual fund under Systematic Withdrawal Plan (SWP). If you get 10% annual return on this investment, then you can withdraw about Rs 1,39,993 every month. In this way, you will get a total income of Rs 2,00,581 every month from annuity and SWP.

Now the question is, how much will you have to invest every month in NPS to create a fund of Rs 2.77 crore in 25 years?

For this, you will have to deposit Rs 20,700 every month in NPS from the age of 35 years.

Here all this information is given through a table….

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In the guideline issued by the Ministry of Personnel, it has been said that the payment rules have been changed after the death of the NPS account holder or after he is removed from service.

The pension rules of government employees have been changed once again. It has not been even a month since the Unified Pension System (UPS) was implemented that a major change has been made in the rules of the New Pension Scheme (NPS). The Pension and Pensioners Welfare Department has issued a new guideline regarding NPS on Wednesday. This guideline has been issued regarding the rules of Central Civil Services (after the implementation of NPS) 2021.

This department, which comes under the Ministry of Personnel, has said in its guideline that this change has been made to bring more clarity regarding the refund of NPS contribution amount to government employees and their beneficiaries. Let us tell you that NPS was implemented in the year 2004 and since then its rules have been changed continuously. In the recent guideline, 6 rules related to NPS have been changed.

6 rules have been changed.

Amount will go to government account: The guideline states that under the Central Civil Service (Pension) Rules, 1972, if an NPS account holder dies or is declared unfit or disabled and is removed from the job, then in this case the contribution made by the government and the return received on it will go back to the government account.

The remaining money will be refunded: It is clearly stated in the guidelines that in such a situation, the remaining pension corpus will be given to the employee or his nominee in lump sum. The rules issued by PFRDA in 2015 will be followed for refunding the money.

Earlier relief will be adjusted: After the implementation of NPS in the year 2004, a rule was made in 2009 that under the CCS Pension Rule, if any relief has been given earlier to save the beneficiaries of the employee from any trouble, then it will be adjusted from its amount before making the final payment of NPS.

The entire money will go to the government account: The guideline states that as per the regulation issued in 2015, if after the death of the employee, his beneficiaries have already taken the benefit under the CCS Pension Rule, then the entire amount of contribution made by the employee and the government and its return will also go back to the government account.

For how long will the interest be calculated: The guidelines clarify that the return on the corpus of an employee after his death will be calculated based on the interest rate of PPF. This interest will be paid only for the period which elapses between the death of the employee and the transfer of the pension corpus i.e. the fund to their beneficiaries.

Money will have to be returned with interest: If all the benefits have already been given as per CCS rules and in such a situation, if the government contribution money has not come into the government account, then this money will have to be returned to the government along with interest from NPS.

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This guideline has been issued on 7 October 2024 by the Department of Pension and Pensioners under the Ministry of Personnel, Public Grievances and Pensions. Under the new guidelines, some changes have been made in the process and rules of NPS contribution, which will be reviewed from time to time.

What is NPS

The National Pension System (NPS) is a pension scheme in which 10% of the employee’s basic salary and dearness allowance (DA) is deducted for the pension fund. In addition, 14% of the basic salary is contributed by the government. NPS is linked to the stock market, which means that the pension of government employees directly depends on the fluctuations of the market. After retirement, 40% of the NPS is invested in annuity so that pension can be received after retirement. However, this scheme does not offer a guaranteed pension, due to which there is dissatisfaction among government employees.

Will be reviewed from time to time

The new memorandum issued by the government clarifies that employees will have to contribute 10 percent of their monthly salary to NPS. This contribution will be rounded off to the nearest whole rupee. Along with this, this contribution will be reviewed from time to time so that any kind of mistake in it can be corrected. If there is any error in calculating the contribution, it will be deposited in the employee’s pension account along with interest.

You can continue your contribution even after suspension

If an employee is suspended, he will have the option to continue making NPS contributions. After the suspension ends, when the employee returns to service, the contribution will be recalculated based on the new pay structure prevailing at that time. This will ensure that the pension contribution of employees is not affected during the suspension period.

Contribution is mandatory even during the probation period

According to the new guidelines, if an employee is absent or on leave without pay, he will not be required to make NPS contribution for that period. However, it will be mandatory for employees working on probation to make NPS contribution, even if they are transferred to another department or institution.

Contribution will be given along with interest on delay

The Drawing and Disbursing Officer will deposit the contribution deducted from the salary of the employee every month. After this, the Pay and Accounts Officer will compile all the contributions by the end of the month and send it to the Trustee Bank. The deadline for depositing the contribution will be fixed especially for the month of March. If there is any delay or mistake in depositing the contribution, the employee will get his entire contribution back along with interest.

Why is the new guideline important

This new guideline is important because it provides employees with more clarity and security regarding their NPS contribution. This will ensure that if there is any error in the salary or contribution of an employee, he will get the benefit with interest on time. Also, the rights of the employees to their pension contribution will remain secure even in situations like suspension or transfer.

Unified Pension Scheme (UPS) announced

Recently, after the demand of government employees, the government has announced the Unified Pension Scheme (UPS). This scheme will be implemented from April 1, 2025. Under this scheme, the employee will not be responsible for funding the pension. The government will bear 18.5% of the basic salary of the employees. This is a guaranteed pension scheme, in which employees who have served for more than 10 years will be entitled to receive a minimum pension of Rs 10,000. Apart from this, a lump sum amount will be given at the time of retirement under UPS. In this, retiring employees will be entitled to receive 50% of their last 12 months’ average basic salary as pension.

Difference between NPS and UPS

While NPS is based on the stock market and does not provide guaranteed pension, employees in UPS will be given guaranteed pension. Employees in UPS will get gratuity as well as a lump sum amount. After retirement, the employee will receive a certain percentage of his salary as pension, which will secure his future.

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New Delhi. If you also want to get a big pension after your retirement, then National Pension System (NPS) can be a good option for you. NPS is a government scheme, which is linked to the market, that is, its return is based on the market. In this scheme, you get the benefit of monthly pension after maturity. If you want, you can also do partial withdrawal at the time of need.

As per NPS Tier-I norms, a person can exit the scheme only after turning 60 years old. Since the aim is to save for retirement, the rules do not make regular withdrawal easy. However, subscribers have the option to make partial withdrawals during the scheme term for urgent needs. Let’s know about the rules for partial withdrawal and premature exit

Partial Withdrawal

NPS allows subscribers to make partial withdrawals for specific purposes after a lock-in period of 3 years.

• After completion of 3 years, you are allowed to withdraw only 25% of your contribution (excluding earn returns).
• Contributions made by your employer to your NPS account will not be considered for calculating the partial withdrawal limit.
• You can make such withdrawals a maximum of 3 times during the entire investment period.
• One can make partial withdrawal to purchase a house, treatment of serious illnesses, disability, education, marriage of children or to start a new venture.

Premature exit

NPS account remains open till the age of 60 years, but you can exit it even before that, but for this you will have to pay some price.

• First of all, you can exit this scheme only after completing 5 years. If you have started investing in NPS after completing 60 years of age, then you can withdraw money after three years.
• You can withdraw only up to 20 per cent of the amount as a lump sum.
• In case of premature withdrawal, you will be able to withdraw only 20 per cent of the fund in lump sum.
• You will have to use the remaining 80 percent of the money to buy annuity. This amount will be used to give you pension for life.
• If the total amount deposited in your fund is less than Rs 2.5 lakh, then you will be allowed to withdraw the entire amount in one lump sum.

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He announced this in a press conference on Saturday and said that concerns have been raised about the social security of government employees and pension is an important part of it.

He talked about the demand of government employees for reforms in the National Pension System (NPS) and said that the government was considering it and now the government has approved UPS. Union Minister Ashwini Vaishnav said that 23 lakh central government employees will benefit from the Unified Pension Scheme. Let us tell you that under UPS, the government has implemented five provisions which make it special. Let us know what are these 5 things.

5 things about UPS make it special from NPS:

First – At least 50% fixed pension

Employees had been demanding for a long time that they should get a fixed amount as pension. This amount will be 50% of the average basic salary of the 12 months just before retirement. The condition for this is that the employee will have to complete 25 years of service.

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Second- Fixed Family Pension

In NPS, the amount of pension to be received by the family on the death of the employee was not fixed. Whereas in UPS, in case of death of an employee while in service, the family will get 60 percent of the pension.

Third part- Minimum Fixed Pension

The minimum pension amount to be given to a retired employee in UPS has also been fixed. In case of minimum service of 10 years, the employee will be given at least Rs 10,000 per month as pension.

Fourth- Arrangement according to inflation

In the Unified Pension Scheme, pension has been linked with inflation. Employees will also get the benefit of inflation indexation along with pension. This arrangement is exactly like the dearness allowance given to the serving employees at present. That is, with the increase in inflation, the government will increase the pension.

Fifth- Apart from gratuity, a lump sum amount will be given on leaving the job.
The government will give 10% of the salary and DA of each employee for every 6 months of service as a lump sum amount after retirement. This amount will not affect the fixed pension of the employees.

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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.

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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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Under this, employees will get a guarantee of up to 50 percent of the last basic salary as pension. In simple language, 50 percent of the last basic salary of the employee before retirement will be given as monthly pension.

Panel to be formed in 2023

In fact, during the second term of the Narendra Modi government, a panel was constituted in March 2023 under the chairmanship of Finance Secretary TV Somanathan. This panel was formed to suggest ways to increase pension benefits under NPS for government employees without returning to the Old Pension System (OPS). The government took this decision at a time when many states have started abandoning NPS and returning to OPS.

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Mention of Andhra Pradesh model

According to the news of Financial Express, the panel has submitted its report to the government in the month of May. This report is largely influenced by the Andhra Pradesh NPS model implemented in 2023. It can be called a mixed model of old and new pension scheme. Under the Andhra Pradesh Guaranteed Pension System (APGPS) Act, 2023, government employees will be given 50 percent of their last salary as monthly pension. This will also include dearness relief i.e. DR. Apart from this, the spouse of the deceased employee is guaranteed a monthly pension of 60 percent of the guarantee amount.

What does this proposal of NPS say?

Under the new proposal, central employees will get a guaranteed pension of up to 50 percent of the last basic salary. Any shortfall in the pension fund required to meet the guaranteed pension amount will be covered from the central government budget. This can benefit about 8.7 million central and state government employees. These will be employees who have been registered in NPS since 2004.

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Many pension schemes are currently running to encourage financial security of senior citizens. Guaranteed pension is being offered in some. Let us know about these schemes in detail-

National Pension System (NPS) is a retirement savings and investment program launched by the Central Government. Under this, you have to invest yourself and citizens get security as their age increases. The investment made in this is based on safe and regulated market based returns. It is supervised by PFRDA. Any Indian citizen between the age of 60 to 65 years can also register in NPS. Also, he can remain a member till the age of 70 years.

By investing in NPS you can manage your old age. The benefits of investing in it are as follows – – Source of income in old age – Market based returns in long term – Expansion of security coverage in old age.

Monthly pension is also available under the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) launched for senior citizens. Senior citizens in the age group of 60-79 years falling in BPL category get a monthly stipend of Rs 300/-. When someone turns 80 years of age, the pension increases to Rs 500 per month. There is no need to make any investment for this pension scheme.

Atal Pension Yojana (APY) was started keeping in mind the future of the poor, the underprivileged and the workers working in the unorganized sector. There is a provision to get minimum monthly pension to the investor under APY. In this, the pension amount can range from Rs 1000 to Rs 5000 per month. Also, you can start investing in this between the age of 18 to 40 years. Under this, any citizen who is or has been a tax payer will not be eligible to participate in APY.

According to the Financial Services Department, ‘This scheme is operated through LIC. Under the scheme, customers get a guaranteed pension of 9% per annum on paying a lump sum amount. Any difference in the guaranteed returns generated by LIC on the fund is compensated by the Government of India through subsidy payments into the scheme. In the scheme, withdrawal of deposited amount is allowed after 15 years of purchasing the policy.

In the budget speech of 2014-15, the then Finance Minister proposed to restart the program for a short period from 15 August 2014 to 14 August 2015 for the benefit of citizens aged 60 years and above.

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Rules Changing from 1st April : The month of March is about to end. The month of April is going to start in two days. With the beginning of April, the financial year 2024-25 will also begin. There are going to be changes in some rules related to money from April 1, which will have a direct impact on your pocket. Let us know which rules will change from April 1.

Charges on SBI Debit Card will increase from April 1.

SBI has shocked crores of its customers. The annual maintenance charge of some debit cards of SBI has been increased. These rates will be revised from April 1, 2024. The bank has increased the maintenance charges on most of its debit cards. Please note that bank card charges vary depending on the type of card.

Change in NPS rules:

Pension Fund Regulatory and Development Authority (PFRDA) is going to introduce Aadhaar-based login authentication in NPS. This rule will come into effect from April 1, 2024.

LPG prices can change.

LPG prices are fixed by the government at the beginning of every month. Government oil companies can change the price of LPG cylinders as well as commercial cylinders. However, the possibility of change in the prices of LPG cylinders during the election season is very less.

Ola Money Wallet

Ola Money has told its customers that the company will shift from ‘Full Know Your Customer Wallet’ (KYC) to ‘Small Prepaid Instrument’ (PPI) wallet from April 1, 2024. This will save the time and expense of customers in the KYC process. The company has said, “We are shifting to the Small PPI system for a maximum wallet load limit of Rs 10,000 from April 1, 2024.”

Banks will remain closed for 14 days in April.

Reserve Bank of India has released the list of bank holidays in the month of April. Like every month, there are going to be bank holidays for many days in April too. Banks are going to remain closed in many states due to festivals like Eid and Ram Navami etc.

Banks will remain closed for a total of 14 days in different states in April. You can check the list of bank holidays by visiting the official website of the Reserve Bank.

SSY, PPF account holders should complete this work by 31st March, otherwise there will be big loss.

The post New Rules: From NPS to debit card, these 5 rules will change from April 1, your pocket will be affected. first appeared on Rightsofemployees.com.

Rules change from 1 April 2024: The new business year will start from 1 April 2024. With the beginning of the new business year and the fourth month of 2024, there will be changes in many financial rules.

Let us tell you that many financial rules change at the beginning of every month. These financial rules have a direct impact on the general public. Today we will tell you which financial rules are changing from April 2024.

Fastag KYC is mandatory

The rules related to Fastag are changing from April 1, 2024. If you do not update Fastag KYC by March 31, 2024, you may face problems from next month.

Actually, the bank will deactivate Fastag without KYC. This means that even if there is balance in Fastag, payment will not be made through it. NHAI has made Fastag KYC mandatory.

PAN-Aadhaar link

It has been made mandatory to link PAN Card with Aadhaar Card. The deadline for linking PAN with Aadhaar (Pan-Aadhaar Link) is 31 March 2024. If PAN is not linked to Aadhar card then the PAN number will be cancelled.

That means PAN will not be used as a document. For linking PAN with Aadhaar after April 1, the user will have to pay a penalty of Rs 1,000. To avoid penalty, the user should link his PAN card with Aadhaar by March 31, 2024.

EPFO’s new rule

EPFO rules are also going to change from April 1, 2024. Actually, Employees Provident Fund Organization is going to implement the new rule from next month. According to this rule, now after changing job, the PF account will be transferred in auto mode.

This means that now the user will not need to give a request to transfer the account. After the implementation of this rule, the problems of the users will be reduced to some extent.

SBI Credit Card

Those users who have SBI Credit Card, let them know that there is going to be a change in the rules of Credit Card from April 1, 2024.

If you make rent payment through SBI credit card, then let us tell you that from April 1, you will not be given any reward point on rent payment. This rule will be valid on some credit cards from April 1, while on others it will be applicable from April 15, 2024 onwards.

LPG gas price

LPG Cylinder Price is updated across the country on the first of every month. LPG prices will also be updated on April 1, 2024.

However, the possibility of change in their prices between Loksabha Election 2024 is very less.

New tax regime

If the taxpayer has not yet selected the tax regime, then he has only a few days left. Actually, from April 1, 2024, the new tax regime will become the default tax regime.

That means the taxpayer will automatically have to pay tax as per the rules of the new tax system.

The post Rules change from 1 April 2024: From Fastag to Tax, NPS, these rules will change from 1 April, know the details first appeared on Rightsofemployees.com.

Two-factor Aadhaar authentication implemented

Pension Fund Regulatory and Development Authority (PFRDA) had informed that it is going to increase its security features. Now two-factor authentication will be required to login to the NPS account. To login into the Central Record Keeping Agency (CRS) system, login can be done after two-factor authentication process. The regulator of the pension fund has also issued a circular regarding this.

Aadhaar based verification is necessary

PFRDA has issued a circular on this matter informing that now additional security features will be added to login to the CRA system. This rule will come into effect from April 1, 2024. After this, NPS account holders will be sent OTP along with user ID and password on the mobile number linked to Aadhaar.

Now users will be able to login to their CRA system only after entering this OTP. PFRDA has said in its issued circular that logging into CRA will be more secure with Aadhaar-based login authentication.

At present this is the system

At present, NPS account holders need only NPS ID and password to login to the CRA system. In such a situation, after adding the security feature of Aadhaar based verification, users will have to enter the ID password as well as Aadhaar based authentication i.e. OTP received on the mobile number linked to Aadhaar.

In this way you will now be able to login to your NPS account.

• For this, first of all visit the official website of NPS
• https://enps.nsdl.com/eNPS/NationalPensionSystem.html .
• Next click on Login with PRAIN/IPIN.
• After this a new window will open in front of you.
• Next enter your NPS ID and password.
• Enter the captcha given below.
• After this, OTP will be sent to the mobile number linked to your Aadhaar to complete the Aadhaar authentication process.
• Enter it here.
• You will be able to open your NPS account.

ITR-U Deadline: Taxpayers should pay attention! Do this work by 31st March, otherwise 200% payment will have to be made.

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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.

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If your employer contributes up to 10% 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 (CTC). 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.

In addition to the 10% contribution of base salary and DA under Section 80CCD (1), you can avail an additional tax benefit of Rs 50,000 under Section 80CCD (1B). This is in addition to the 80C limit. But, it has to be kept in mind that the deduction available under section 80CCD (1) is subject to the total 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.

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.

Most of the deductions and exemptions are not available in the new income tax regime. 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 avail this benefit.

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PPF Interest Rate: If you invest money through PPF account (PPF) or Sukanya Samriddhi Yojana (SSY) or National Pension System (NPS), then this news is useful for you. Actually, under small savings schemes, you have to deposit a minimum amount in your account every financial year.

To keep the account active, it is necessary to maintain minimum balance. If the account holder fails to deposit the minimum amount every year, the account may be frozen. Apart from this, penalty may also be imposed on the account holder.

The last date for depositing the minimum amount in PPF, NPS and Sukanya Samriddhi account for the current financial year is March 31, 2024. In the budget of 2023, the new tax regime has been made more attractive by the government.

Under the new tax regime from April 1, 2023, the income tax slab was changed and the basic exemption limit was increased from Rs 2.5 lakh to Rs 3 lakh in a financial year. Apart from this, standard deduction is also available in the new tax regime. Under this, you do not have to pay any tax on income up to Rs 7 lakh.

Fine may be imposed for not depositing the minimum amount

In such a situation, it is possible that you may have selected the new tax regime to pay your tax for the current financial year 2023-24. In such a situation, if you were investing in small savings schemes along with paying tax under the old tax regime till the last financial year, then like every year,

you will get the savings like PPF, Sukanya Samriddhi Yojana (SSY) and NPS. Will have to invest in the scheme. Even if you select the new tax regime, you will not get the benefit of tax exemption on investments in these savings schemes. In fact, fine can also be imposed for not depositing the minimum amount in all these accounts.

How much money is necessary to deposit in PPF?

According to PPF Rules 2019, it is necessary to deposit at least Rs 500 in the PPF account every financial year. If the minimum amount is not deposited then the PPF account will become inactive. Loan and withdrawal facilities are not available when the PPF account is inactive.

You can revive an inactive account before maturity. A fee of Rs 50 is charged every year in case of account default. Apart from the default fee, the depositor also has to deposit a minimum amount of Rs 500 every year. You are required to deposit a minimum amount of Rs 500 every year in this account.

Sukanya Samriddhi Yojana

This is also a tax saving investment option for those people who want to save for their girl child. According to the rules of SSY scheme, account holders are required to deposit a minimum of Rs 250 every financial year. If minimum Rs 250 is not deposited in the account in a financial year then Sukanya account is considered as default account. The rules of the scheme allow any default account to be revived at any time before maturity. To revive the account, one has to pay Rs 50 for every default year.

NPS

Some taxpayers open an NPS account to save tax by investing an additional Rs 50,000 under Section 80CCD(1B) of the Income Tax Act. Under Section 80C, investment of Rs 50,000 is allowed more than the limit of Rs 1.5 lakh. According to the rules of NPS, it is necessary for any person to deposit at least Rs 1,000 every financial year. But if your account is inactive then you can activate it by depositing Rs 500. But here it is important to keep in mind that you will have to deposit at least Rs 1000 in a financial year.

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There are many types of confusions regarding tax saving among the people working in the private sector. Often, when tax is deducted from salary in the months of February and March, people then wonder where to save tax by investing. Every employee is aware of the exemption up to Rs 1.5 lakh under 80C. But there is no correct information about how to save more than this.

Question– Where are exemptions available under Section 80C on investment?
Answer- First of all, know that under Section 80C, only investments up to a maximum of Rs 1.5 lakh come under the exemption limit. Life Insurance Premium, Deferred Annuity, Contribution to PPF, Payment of Unit Linked Insurance Plan (ULIP) Premium, Payment in respect of Non-Commutable

Deferred Annuity, Investment in National Savings Certificates, Payment of Children’s Education Fees (Tuition Fees only) Investments in approved debentures/shares/mutual funds, investments in fixed deposits (FD) for 5 years or more, repayment of home loan (principal amount only) and investments in Sukanya Samriddhi Account come under the purview of 80C.

That means you can get income tax exemption on investment up to a maximum of Rs 1.5 lakh. But apart from this, where else can you invest and save more tax immediately? Let us tell you about this. You must have heard about the National Pension Scheme (NPS). Today we tell you the benefits of investing in it.

Question- Why is it necessary to invest in NPS to save tax?

Answer– To save tax, you can deposit a maximum of Rs 50,000 in the National Pension System (NPS). Under section 80CD (1B) of the Income Tax Act, you can avail additional tax benefits of 80(C) on the savings made in NPS. That is, if you invest in NPS, then investment up to Rs 50 thousand will come under the ambit of separate income tax exemption. In this way, you can avail tax exemption on investment up to Rs 2 lakh including 80C.

Question- Can people with private jobs also save tax by investing in NPS?

Answer: Yes, you can save your salary from being deducted by opening an NPS account immediately. Not only this, apart from tax, NPS is also a great retirement scheme. National Pension Scheme (NPS) was started in January 2004. Earlier only government employees could invest in this scheme. But in the year 2009 it was opened to all categories of people. That means everyone can take advantage of this scheme. Now people doing private jobs on a large scale are also joining this scheme.

Question- What is this NPS?

Answer– Apart from tax exemption, if you are looking for better earnings even after retirement, then you can open an account in NPS. You can open this account in your name or in your wife’s name. In this scheme, a lump sum and monthly pension facility is available after completion of 60 years of age. That means after 60 years you will not be dependent on anyone.

Question- How much and how can one invest in NPS?

Answer- According to your income, you can deposit money in NPS account monthly or annually. You can start investing in NPS with Rs 1,000 per month, which you can continue till the age of 65 years. It is necessary to buy 40 percent annuity on NPS investment. Whereas 60 percent amount can be withdrawn in lump sum after 60 years.

The post NPS Double Benefit :Two big benefits of investing in NPS! Monthly pension of Rs 45000 with extra tax saving! first appeared on Rightsofemployees.com.

What will come out of Finance Minister Nirmala Sitharaman’s box for them this time? Will they get exemption from standard deduction? Will the discount on NPS increase? Will NPS be included in the new tax regime? Will the tax exemption limit increase? Will the tax free income limit of Rs 7 lakh be increased? If sources are to be believed, this wish of the taxpayers may be fulfilled. Yes, the limit of tax free income can increase from Rs 7,00,000 to Rs 7,50,000.

Will taxpayers get Modi’s guarantee?

Taxpayers have a guarantee this time from the Modi government. India’s budget is going to be presented tomorrow on 1 February 2024. Taxpayers have many expectations from Finance Minister Nirmala Sitharaman’s interim Budget 2024.

According to sources, Modi government may give some more relief to taxpayers. Currently, in the new tax regime no tax has to be paid up to Rs 7 lakh. Now the government can increase it to Rs 7.50 lakh. At the same time, the government can also give a separate tax slab to women, in which no tax will have to be paid up to Rs 8 lakh.

Budget will be presented tomorrow

Union Finance Minister Nirmala Sitharaman will present the budget (Union Budget 2024) for the sixth time on 1 February 2024. Nirmala Sitharaman is going to present the last budget of the second term of the Modi government because after that Lok Sabha elections are going to be held across the country.

In such a situation, the government can make many announcements about salary classes. The government’s focus is to increase focus on the new tax regime. More and more people have to be connected with it. This time it is expected that the government will announce the new tax and more people will choose it.

The post Tax Free income: Tax free income limit may increase from Rs 7,00,000 to Rs 7,50,000, check details first appeared on Rightsofemployees.com.

This circular states that NPS account holders can withdraw up to 25% of the amount excluding employer contribution from the individual pension account. This facility will be available to account holders from 1st February. In such a situation, know here under which conditions partial withdrawal can be made from NPS, what are the necessary conditions and process.

Know in which situations you can withdraw money

• If you need money for your children’s higher education, you can make partial withdrawal from NPS.
• Account holders can also make partial withdrawal up to 25 percent for the marriage of children.
• Partial withdrawal can also be made for buying a house, home loan repayment etc., but this rule has been slightly changed. If you already have a house in your name or your spouse’s name, you will not be able to avail this facility to buy another house.
• Money can be withdrawn from the NPS account for hospital stay and treatment expenses during serious illnesses.
• The amount can be withdrawn in case of medically incapacitation or disability due to any accident.
• In case of serious illness, the amount can be withdrawn for hospitalization or treatment.
• You can withdraw money for starting any kind of business, startup, skill development or any course.

Requirements for partial withdrawal

• NPS subscribers must be a member for at least three years from the joining date.
• More than one-fourth of the subscriber’s contribution cannot be withdrawn from the pension account.
• Withdrawals can be made a maximum of 3 times during the entire subscription tenure. It is necessary to have a gap of 5-5 years during all the three partial withdrawals. This withdrawal will not exceed 25 percent of your entire contribution. 

What is the withdrawal process?

• To withdraw the amount of 25 percent or less under NPS, one will have to first apply to any government nodal agency of NPS.
• Along with this application, you will have to give a self-declaration as to the purpose for which you are withdrawing the amount.
• After this the application will have to be submitted to the Central Recordkeeping Agency (CRA).
• Then the agency will process the application after verification.
• If the subscriber is ill, a family member or nominee can make this request in his place.  

Let us tell you that the Central Government had launched the National Pension Scheme on January 1, 2004. Initially, it was only for government employees, but after 2009, private sector employees were also given the facility to invest in this scheme. According to PFRDA, after the age of 60 years (retirement), there is a facility to withdraw 60 percent of the total maturity amount from NPS in lump sum, the remaining 40 percent of the maturity amount has to be invested in an annuity plan, from which pension is received. 

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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.

Change in rules for withdrawal from NPS

Pension regulator PFRDA has announced changes in the rules for withdrawal from the National Pension System i.e. NPS. The new rule will come into effect from February 1. Under the new rule, NPS account holder will not be allowed to withdraw more than 25 percent of the total deposited amount. This will include the contribution amount of both the account holder and the employer.

New rule of IMPS

From February 1, you will be allowed to transfer up to Rs 5 lakh between bank accounts without adding any beneficiary. National Payments Corporation of India (NPCI) has streamlined the Immediate Payment Service (IMPS) to make bank account transactions faster and more accurate. According to NPCI, you can send money by simply entering the cellphone number and bank account name of the recipient or beneficiary.

SBI home loan offer

State Bank of India (SBI) customers can avail home loan concession up to 65 bps lower than the actual card rate. The last date for processing fees and concession on home loan is 31 January 2024. This discount is valid for all home loans, including Flexipay, NRI, Non-Salary, Privilege and Own Home Loans. This benefit will end from February 1.

Punjab and Sindh BankSpecial FD

The last date for Punjab & Sind Bank (PSB) special FD ‘Dhan Lakshmi 444 Days’ is January 31, 2024. All resident Indians who are eligible to open a domestic fixed deposit account NRO/NRE deposit account holders can apply to open this special FD scheme called PSB Dhan Lakshmi.

Fastag without KYC link will become inactive

Fastag without KYC will be deactivated or blacklisted by banks after January 31. NHAI has taken this step following recent reports of multiple FASTags being issued to one vehicle in violation of the Reserve Bank of India order and FASTags being issued without KYC. It aims to discourage user behavior of using a single FASTag for multiple vehicles or linking multiple FASTags to a particular vehicle. In such a situation, if your Fastag does not have KYC then get it done by 31st otherwise it will become inactive from 1st February.

New installment of sgb

The Reserve Bank of India (RBI) will issue the final tranche of Sovereign Gold Bonds (SGBs) in the 2023-24 series. This upcoming issue, known as SGB 2023-24 Series IV, will be available for subscription on February 12, 2024 and will close on February 16, 2024.

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Pension fund regulator PFRDA has sought “parity” with the Employees’ Provident Fund Office (EPFO) on the taxation front for contributions by employers. It is expected that some announcements in this regard are expected to be made in the interim budget.

Finance Minister Nirmala Sitharaman may present the interim budget on 1 February. This will be his sixth budget.

This is the hope regarding NPS

At present there is a disparity in the contribution of employees and employers. In NPS, 10 percent tax exemption is given on basic salary and dearness allowance. Whereas, in case of EPFO it is 12 percent.

Deloitte As per budget expectations, to promote long-term savings through NPS and reduce the tax burden for senior citizens above 75 years of age, the annuity portion of NPS has been made tax free for holders from the age of 75 years onwards. should go.

Apart from this NPS can be included with interest and pension. This will ensure that senior citizens above 75 years of age do not need to file returns if they have NPS income. Currently, lump sum withdrawal of 60 percent is tax free.

There is also a demand to provide tax benefits for NPS contributions under the new tax regime.

Till now, an individual’s contribution up to Rs 50,000 to NPS under Section 80CCD (1B) is deductible under the old tax regime, but it is not under the new tax regime.

Committee formed for government employees

With regard to government employees, the government last year constituted a committee under Finance Secretary TV Somanathan to review the pension system and suggest measures for its betterment. The panel report is still awaited.

This committee will suggest whether any changes are necessary in the existing framework and structure of the National Pension System (NPS) applicable to government employees. This panel will suggest measures

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What is eNPS?

eNPS is a digital platform through which Central, State Government employees as well as employees of government related institutions can open their NPS account. Any government employee can open his/her ENPS account in two ways. First – Through Aadhaar online and offline KYC. Second- Through PAN card along with other KYC documents. 

 What will be the benefit of eNPS? 

• PFRDA has stated many benefits of the eNPS platform. 
• Onboarding of government employees will be easier than before.
• Through this, the nodal officer will be able to do verification easily.
• Through eNPS, the work of the nodal officer will become easier and as it is paperless, it will also take less time. 
• In this, registration can be done only by esigning through OTP. 
• Due to digitalization the cost of opening an NPS account will reduce. 
• Due to online process, PRAN will be generated on time and due to this, we will be able to ensure contribution on time. This will increase your chances of getting higher returns. 
• Due to online process, the possibility of cancellation will also reduce. 
• This will reduce logistics costs. In physical form, the forms are first submitted to the nodal officer by the subscriber. After this the nodal officer submits it to CRA-FC. 

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PFRDA Chairman’s statement

Amidst all the expectations and debates, PFRDA Chairman has also made a big comment regarding the pension scheme. Pension regulator Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty was participating in a program in Mumbai on Friday. While talking to the media on the sidelines of the programme, he talked about NPS.

Currently discount is available up to this limit

The pension regulator chief said that the contribution made by employers in NPS should be made tax free up to 12 percent of the employee’s basic salary. At present, in the pension scheme for employees enrolled in NPS under private sector individual or corporate scheme, employers get tax exemption only on an amount equal to 10 percent of the basic salary.

Get benefits like government employees

Mohanty said that he has favored bringing the tax benefits on employer contribution in NPS at par with the 12 percent limit in EPF. He said that it should ultimately go up to 14 percent of the basic salary like that of government employees. Currently, under EPF rules in the private sector, contributions up to 12 percent of basic salary and dearness allowance are exempted from tax.

What does the income tax law say?

Under the current income tax rules, employers can show NPS contribution up to 10 percent of their employee’s basic salary as business expense. This helps them to save tax. Employees can also avail tax benefits under section 80 CCD (2) of the Income Tax Act on the employer’s contribution equal to 10 percent of their salary. This benefit is available in both the new and old tax system.

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There are preparations for major changes in the rules of the National Pension Scheme (NPS) soon. Withdrawal of funds from NPS account can be increased from 60 per cent to 100 per cent through Systematic Withdrawal Facility (SLW). Pension Fund Regulator (PFRDA) Chairman Dr. Deepak Mohanty has indicated this in the recently organized NPS Thinking Camp.

It is noteworthy that PFRDA has recently launched systematic withdrawal facility for NPS members. Under this, members can withdraw 60 percent of the maturity amount received after retirement or at the age of 60 years on monthly/quarterly/half yearly or yearly basis.

This facility is available starting from the date of retirement till the age of 75 years. Earlier this fund was allowed to be withdrawn on annual basis or in lump sum.

What will change for subscribers: NPS subscribers in SLW facility are exempted from purchasing annuity/pension plan till the age of 75 years. That means members can keep the entire money in the NPS account and withdraw it at regular intervals.

If the new proposal of PFRDA is implemented then members will be allowed to withdraw 100 percent amount from SLW. The pension regulator says that with this the money will remain under the NPS fund for a long time and the members will continue to enjoy the benefits of compound interest. They will like this option more.

Request has to be made like this: NPS subscribers will have to request once through online or offline mode to start SLW facility. Customers will have to specify the start and end date of this facility. They also have to tell how much amount they want at what interval. 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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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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Subscribers will be able to withdraw this money monthly, quarterly, half yearly or annually. This withdrawal will continue till the subscriber turns 75 years old. In NPS, when the subscriber turns 60, 60 percent of the amount deposited in the fund is allowed to be withdrawn in lump sum. It is mandatory to buy annuity with the remaining money

Recently, Pension Fund Regulatory and Development has taken a big decision. It has been decided that the subscriber will be given the facility to withdraw 60 percent lump sum amount under the Systematic Lump-Sum Withdrawal ( SLW ) facility. Subscribers will be able to withdraw this money monthly, quarterly, half yearly or annually. This withdrawal will continue till the subscriber turns 75 years old.

In NPS, when the subscriber turns 60, 60 percent of the amount deposited in the fund is allowed to be withdrawn in lump sum. It is mandatory to buy annuity with the remaining money. The rule of buying annuity will remain the same as before. However, this move by PFRDA does not mean that the regulator has accepted the demand for systematic withdrawal of the entire money deposited in the NPS fund on completion of 60 years of age.

The rule of purchasing annuity with 40 percent fund will remain

40 percent of the money deposited in NPS will still have to be used to buy annuity. With this the subscriber will get pension. The recent decision of PFRDA will be applicable only on 60 percent amount deposited in NPS. NPS subscribers can still withdraw the lump sum amount gradually. But, this process is not yet automated.

If the subscriber wishes, he can defer withdrawal of full or partial lump sum amount till the age of 75 years or can opt for annual withdrawal. If you want to withdraw this money gradually, then you will have to submit a request for it every year. Then it will have to be authorized.

With the introduction of the new feature, the facility of automated systematic withdrawal will be available. This facility will be similar to that offered by mutual fund houses. This facility is beneficial for those who have investments in stocks through Scheme E of NPS. Vidya Bala, co-founder of investment advisory firm PrimeInvestor.in, said that the advantage of systematic withdrawal is that if your NPS portfolio is invested in shares, it will remain in its place. This will continue to benefit from the rise in equity markets. This will increase the total income through NPS.

Helpful in earning higher returns

He said that if the subscriber’s portfolio is invested in equities then there are benefits of systematic withdrawal feature. This can give higher returns to the subscriber. It would not be wise to withdraw the lump sum and invest it in guaranteed fixed income instruments. The returns on fixed deposits and bonds have not been high in the last two decades.

Therefore, the systematic withdrawal feature of NPS will give you a chance to earn better returns in the long run. Nirav Karkera, research head of financial advisory firm Fisdom, believes that if the NPS subscriber is conservative i.e. he does not want to take risk then lump sum withdrawal would be more appropriate.

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The government has made some changes in the withdrawal rules of this scheme (NPS Withdrawal Rules), which will make it more convenient for them to withdraw their money and use it as per their need. Now you will be able to do Systematic Lump Sum Withdrawal (SLW- Systematic Lump Sum Withdrawal). Let us know what rules have changed, and how you will benefit.

What are the current rules?

PFRDA (Pension Fund Regulatory and Development Authority) had recently issued a circular, in which it has been said that as per the existing rules of withdrawal, subscribers can take their money in the form of annuity till the age of 60 years or 75 years after superannuation. Or you can take out Lamsam.

They will have to withdraw the lump sum amount in lump sum or can withdraw it on an annual basis. If withdrawing on annual basis, they will have to submit a withdrawal request every time. As per the amendments in Regulation 3 and Regulation 4 of the PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015, it is now proposed to provide systematic withdrawal facility to the subscriber in a phased manner.

Now subscribers can choose to withdraw 60 per cent of their pension corpus monthly, quarterly, half-yearly or annually till the age of 75 years. That is, where earlier they had the option of withdrawing a lump sum amount at one time or once annually, now they will be able to choose the lump sum withdrawal period as per their convenience.

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According to an ET report, the Pension Fund Regulatory and Development Authority (PFRDA) has proposed to provide the option of face-wise withdrawal of lump sum amount through the Systematic Lumpsum Withdrawal (SLW) facility. But you will get SLW facility only on the withdrawable lump sum maturity amount. According to the rules, after retirement or after the age of 60 years, you can withdraw 60 percent of the maturity amount from NPS in lump sum, while the remaining 40 percent amount has to be used to purchase an annuity plan.

PFRDA announced this through a circular on October 27, 2023. According to the proposed rule, through SLW you can withdraw up to 60% of your pension fund on monthly, quarterly, half-yearly or annually basis up to the age of 75 years. There has been no change in the rules regarding annuity.

What are the existing rules

As per the current rules, NPS subscribers can defer both lump sum withdrawal and annuity or any one component after retirement till the age of 75 years. Whereas 60 per cent of the maturity amount can be withdrawn either in lump sum or in multiple installments on an annual basis. But if withdrawal is done on annual basis then you will have to apply for it every year.

What is SLW?

This is similar to a systematic withdrawal plan like a mutual fund. Central record keeping agency CRA has started this facility for NPS subscribers. In this facility, the amount can be withdrawn systematically after retirement. Those who have taken an NPS plan have the option to withdraw a fixed amount systematically at regular intervals after retirement.

NPS subscribers will have the option to choose the systematic withdrawal option for 60 per cent of the lump sum. The remaining 40 percent amount will be used for annuity purchase. According to the Chairman of PFRDA, the annuity purchase rule will remain as it is.

Benefits of SLW

1. Benefit of cash flow at regular intervals.
2. Regular cash flow will increase monthly income.
3. Means of wealth creation. Returns will continue to be credited on the remaining deposited amount.
4. Tax benefits can be availed on all SLW withdrawals

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In which investors get the benefit of lump sum amount and monthly pension after retirement. If you have also invested in this scheme, then how much money has been deposited in your name (NPS Balance Check) can be known sitting at home.

There are three ways to check the balance of NPS accounts.

1. Via SMS

Account holders of National Pension System can also do balance check (NPS Balance Check) through SMS. For this you will need the registered mobile number. Give a miss call to 9212993399 from the registered mobile number linked to the NPS account. After this a message will come to you. In which all the information of your NPS account will be present.

1. Throughc

• You can also find the amount deposited in NPS account by downloading the UMANG app in your mobile.
• Download the Umang app on your phone.
• Now login and select NPS.
• – After this you will have to choose the option of current holding.
• – Now enter your Permanent Retirement Account Number and Password.
• After submitting, the account balance will appear in front of you.

1. NSDLthrough the portal of

• First of all you have to go to the portal of NSDL.
• As soon as you log in, enter your Permanent Retirement Account number and password.
• After entering the captcha code, select the option of holding statement.
• – Now click on the option of transaction statement.
• – After this, the amount deposited in your account will appear on the screen.

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Currently, investments up to Rs 1.5 lakh per annum in various tax saving schemes, home loans and life insurance policies are eligible for deduction under Section 80C. Savings schemes eligible for deduction under section 80C include PPF, EPF, NSC, NPS, SCSS, FDs for five years in banks and post offices, ELSS and mutual funds etc.

Taxpayers have been demanding to increase the section 80C limit for many years. Even many groups had demanded to increase it to 3 lakhs, in which ICAI, in its pre-budget 2023 recommendations, had demanded the government to increase the limit under section 80C from Rs 1.5 lakh to Rs 3 lakh.

Will the government increase the limit

The Central Government has so far decided not to increase the limit under section 80C. This information has been given in the statement issued by the Ministry of Finance. At the same time, a new tax regime has been introduced without Section 80C deduction with lower rates by not increasing the limit. State Finance Minister Pankaj Chowdhary said in the Lok Sabha on July 31 that it has been the declared policy of the government to simplify the Income Tax Act, 1961 by reducing the rates of taxes. In such a situation, there is no proposal to increase the exemption under Section 80C of the Income Tax Act under consideration.

Increased interest of these schemes

Minister of State for Finance Pankaj Chowdhary said that in the second quarter (July to September) of the financial year 2023-24, the rate of interest on National Savings Fixed Deposit Scheme (1 year and 2 years) and National Savings Recurring Deposit will be increased by 10 bps and 30 bps respectively. has been increased. Chaudhary also said that the net collection under small savings for the first quarter of the financial year 2023-24 was Rs 74,937 crore.

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Currently, investments up to Rs 1.5 lakh per annum in various tax saving schemes, home loans and life insurance policies are eligible for deduction under Section 80C. Savings schemes eligible for deduction under section 80C include PPF, EPF, NSC, NPS, SCSS, FDs for five years in banks and post offices, ELSS and mutual funds etc.

Taxpayers have been demanding to increase the section 80C limit for many years. Even many groups had demanded to increase it to 3 lakhs, in which ICAI, in its pre-budget 2023 recommendations, had demanded the government to increase the limit under section 80C from Rs 1.5 lakh to Rs 3 lakh.

Will the government increase the limit

The Central Government has so far decided not to increase the limit under section 80C. This information has been given in the statement issued by the Ministry of Finance. At the same time, a new tax regime has been introduced without Section 80C deduction with lower rates by not increasing the limit. State Finance Minister Pankaj Chowdhary said in the Lok Sabha on July 31 that it has been the declared policy of the government to simplify the Income Tax Act, 1961 by reducing the rates of taxes. In such a situation, there is no proposal to increase the exemption under Section 80C of the Income Tax Act under consideration.

Increased interest of these schemes

Minister of State for Finance Pankaj Chowdhary said that in the second quarter (July to September) of the financial year 2023-24, the rate of interest on National Savings Fixed Deposit Scheme (1 year and 2 years) and National Savings Recurring Deposit will be increased by 10 bps and 30 bps respectively. has been increased. Chaudhary also said that the net collection under small savings for the first quarter of the financial year 2023-24 was Rs 74,937 crore.

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National Pension System: Everyone does future planning. Everyone also searches for their retirement plan. But, often people do not know the right tool. If you are worried about your retirement then your wife can solve this problem. If you open this special account in the name of your wife, then the problem will be solved.

National Pension System or National Pension Scheme (NPS) is one such scheme, in which not only you but your wife can also help in making money. New Pension System (NPS) account can be opened in the name of the wife. NPS account will give a lump sum amount to the wife at the age of 60 years. Apart from this, you will get the benefit of pension every month.

This will be the regular income of the wife. The biggest benefit of NPS Account is that you can decide yourself how much pension you want every month. Due to this, there will be no tension of money at the age of 60.

Open NPS account in the name of wife

New Pension System (National Pension Scheme) account can be opened in the name of the wife. As per the convenience, the option of depositing the money every month or annually is available. An NPS account can be opened in the name of the wife even with Rs 1,000. NPS account matures at the age of 60 years. Under the new rules, if you want, keep running the NPS account till the age of the wife is 65 years.

But, how to make money from NPS?

Suppose your wife’s age is 30 years now and you deposit Rs 5000 in NPS account every month. Your annual investment will be 60 thousand rupees. Keep investing for 30 years. Overall your investment will be Rs 18 lakh. But, money will be made now. At the time of retirement, you will have a huge fund of Rs 1,76,49,569 ready. In this, Rs 1,05,89,741 will be available only from interest. Here we have kept the average interest at 12 per cent. Now compounding works. The investment may be 18 lakhs but compounding has taken your money above 1.5 crore rupees (Rs 1,76,49,569).

Now understand how the pension formula will be decided?

This is the biggest benefit of NPS Account that you can decide yourself how much pension you want. When your wife’s account matures at the age of 60, you will get Rs 1,05,89,741 in lump sum. This is the same money which is made from interest. Invest the remaining 70,59,828 in annuity plans. We have kept the annuity as minimum 40% only. The annual annuity rate is kept at 8 percent.

₹ 5000 monthly investment will create a fund of ₹ 1.76 crore

How much lump sum amount will be received and how much pension? We have calculated with the NPS calculator of HDFC Pension.

– Age – 30 years 
– Total investment period – 30 years 
– Monthly contribution – Rs 5,000 
– Estimated return on investment – 12 per cent 
– Total pension fund – Rs 1,76,49,569 (at maturity)
– Annuity plan of Rs 70,59,828 (40%)
– Estimated Annuity Rate 8%
– Monthly Pension – ₹ 47,066

Central government runs the scheme

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 remains completely safe. However, the money you invest under this scheme does not guarantee returns. According to financial planners, NPS has given an average annual return of 10 to 12 per cent since its inception.

Note: Here the calculation of NPS has been done on a general basis. Your total fund will be decided only by your investment and the returns you get. Before investing, take the advice of a financial advisor.

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Currently, investments up to Rs 1.5 lakh per annum in various tax saving schemes, home loans and life insurance policies are eligible for deduction under Section 80C. Savings schemes eligible for deduction under section 80C include PPF, EPF, NSC, NPS, SCSS, FDs for five years in banks and post offices, ELSS and mutual funds etc.

Taxpayers have been demanding to increase the section 80C limit for many years. Even many groups had demanded to increase it to 3 lakhs, in which ICAI, in its pre-budget 2023 recommendations, had demanded the government to increase the limit under section 80C from Rs 1.5 lakh to Rs 3 lakh.

Will the government increase the limit

The Central Government has so far decided not to increase the limit under section 80C. This information has been given in the statement issued by the Ministry of Finance. At the same time, a new tax regime has been introduced without Section 80C deduction with lower rates by not increasing the limit. State Finance Minister Pankaj Chowdhary said in the Lok Sabha on July 31 that it has been the declared policy of the government to simplify the Income Tax Act, 1961 by reducing the rates of taxes. In such a situation, there is no proposal to increase the exemption under Section 80C of the Income Tax Act under consideration.

Increased interest of these schemes

Minister of State for Finance Pankaj Chowdhary said that in the second quarter (July to September) of the financial year 2023-24, the rate of interest on National Savings Fixed Deposit Scheme (1 year and 2 years) and National Savings Recurring Deposit will be increased by 10 bps and 30 bps respectively. has been increased. Chaudhary also said that the net collection under small savings for the first quarter of the financial year 2023-24 was Rs 74,937 crore.

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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.

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A lot of ruckus is being seen regarding the old pension scheme. Many government employees are advocating the re-implementation of the old pension scheme and are also demonstrating in many corners of the country to re-implement the old pension scheme. Meanwhile, people’s anger is also being seen against the new pension scheme. Now an important update regarding the pension scheme has come to the fore. Employees are constantly demanding from the Central Government to restore the old pension scheme.

Railway employees’ organizations NFIR, URMU and other federations are going to hold a rally together against the New Pension Scheme (NPS). The date of this rally has also been fixed. Railway employees’ organizations will hold a rally on August 10 at Ramlila Maidan in Delhi. During this, employees of other organizations across the country will also participate.

Pension Scheme

National Federation of Indian Railwaymen (NFIR) General Secretary M Raghuvaiah and Northern Railway Mazdoor Union (URMU) General Secretary BC Sharma said that a rally will be held at Ramlila Maidan on August 10 against the new pension scheme along with various federations/associations including railway employees. will be organized. An appeal has also been made for maximum participation of people in this rally. He said that representatives of state governments and defense sector, doctors, teachers, etc. will participate in this.

Old pension scheme

According to a statement, both the leaders said, “Our demand is that the one who brings old pension, will get votes only.” Whichever party will bring this issue in its manifesto, we will support that party.” Raghuvaiah said that a protest will be held at Ramlila Maidan along with various federations/associations, in which railway employees from all over the country will participate. On this occasion, a program of intense struggle against NPS and for the restoration of OPS can be declared by the joint platform in future.

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The Pension Fund Regulatory and Development Authority (PFRDA) has issued a notification on 27 July 2023 to ease the rules for exiting the NPS i.e. National Pension Scheme. This will benefit crores of subscribers of NPS. It has been told in the issued notification that now NPS subscribers can choose any annual scheme by exiting the pension fund. The great thing is that no fee will be charged from the subscribers for this.

If someone wants to leave this pension scheme and exit, then he can easily do so. PFRDA has further simplified the rules to facilitate the people. PFRDA has ordered the nodal officers of Government, POP and National Pension System Trust to help NPS subscribers choose the scheme according to their needs so that they do not face any kind of trouble further.

No fee will be charged

PFRDA has said that customers can choose any kind of annual service and for that they will not have to pay any charge. The regulator has said that the subscribers are already paying tax to the government, so no additional charge will be taken from them. Insurance companies have been instructed that they can only take the premium amount from the subscriber. Apart from this, they should not be pressurized for any other kind of fee.

Rules for exit from NPS

According to the rules of PFRDA, if the amount deposited by the subscriber in NPS and interest in total is less than Rs 5 lakh, then he can withdraw the entire amount at once. If this is exceeded, 40 percent of the amount will be kept for pension and 60 percent of the amount can be withdrawn together. 40% of the amount is used to buy a pension plan. If the subscriber wants to buy a pension plan before the age of 60 years, then he will have to use at least 80 percent of the corpus.

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The Pension Fund Regulatory and Development Authority (PFRDA) has given great relief to crores of subscribers of the National Pension System. PFRDA has issued a notification on July 27, 2023, issuing a clarification on the rules for exiting the pension scheme. According to this notification, NPS subscribers can now select any annuity plan as soon as they exit the pension fund. This choice will be according to the need of the subscriber. In such a situation, they will not be charged any kind of fee for this work.

Rules for exiting pension have been simplified

PFRDA has tried to make it easier for the beneficiaries of the National Pension System to exit the scheme. If a subscriber wants to exit this scheme after retirement, he can easily take an exit from it. In order to give maximum information about the exit rules of NPS, PFRDA has ordered the nodal officers of Government, POPs and National Pension System Trust to help NPS customers choose the scheme according to their needs. With this, the beneficiaries will not have to face any kind of problem in future.

Will not have to pay the charge

Apart from simplifying the exit rules of NPS, PFRDA has also informed that the subscribers will not have to pay any additional charges for opting for any type of annuity service. Along with this, PFRDA has also made it clear that Bina Company can only charge premium from NPS subscribers as NPS subscribers already deposit the fee as tax to the government. In such a situation, there should be no pressure on them to charge any kind of fee for other services. Along with this, it will be the responsibility of the Compliance Officer to complete all the tasks related to the Annuity Service Provider. Significantly, PFRDA is trying to make the subscribers more empowered by providing maximum facilities to the subscribers.

What is the exit rule from NPS?

As per PFRDA rules, NPS subscribers can use 40% of their entire corpus to buy annuity at the time of maturity. On the other hand, the remaining 60 percent can be withdrawn in one go, but if this corpus is less than Rs 5 lakh, then you can withdraw the entire amount at the time of maturity. On the other hand, if you want to buy a pension plan before 60 years, then you are required to use at least 80% of the NPS corpus.

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After retirement, apart from getting a lump sum amount under this, the benefit of pension is also available every month. Through the website of NPS, you can invest in it and here the returns and benefits can be easily understood. NPS calculator is also available here. If you want to invest, then you can understand the return on investment as per the requirement.

Under the National Pension System, more benefits can be availed by investing a very small amount. Here’s how you can get a monthly pension of Rs 57,000 by saving Rs 100 a day. Let’s understand the calculation

Pension on investment of 1500 per month at the age of 25

If you start investing Rs 1500 i.e. Rs 50 per day in NPS at the age of 25, then by the age of 60 the total corpus will be Rs 57,42,416. However, for this the annual interest should be 10 percent. You can invest even till the age of 75. At the time of exit from the scheme, investors have the option to buy an annuity plan with a corpus of up to 100 per cent.

If 100% annuity is purchased with this copper, the customer can avail a monthly pension of Rs 28,712. If only 40% of the annuity is purchased, then the monthly pension will be Rs 11,485 and you will get a lump sum amount of Rs 34 lakh, which you can withdraw.

How much pension will be received on Rs 100 per day

If you start investing Rs 3000 every month i.e. Rs 100 per day from the age of 25, then according to the NPS calculator, after 60 Rs 1,14,84,831 will be accumulated. If 100% annuity is purchased with this amount, then the total monthly pension will be Rs 57,412 and if only 40% annuity is purchased, then only Rs 22,970 will be given as monthly pension, but after retirement the lump sum amount will be Rs 68 lakh.

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Actually, if your employer (the company in which you work) contributes up to 10% of your basic salary to the NPS corpus, then this amount will not come under the purview of tax. But, there has been a lack of enthusiasm among the employees to take advantage of it.

PFRDA chairman Deepak Mohanty had told Moneycontrol in June that NPS has a lot of potential, but it is currently underutilized. He told that PFRDA has linked about 13,000 companies to this scheme. But not many employees are showing interest in this scheme.

Let us try to understand how you will benefit if your employer contributes to your NPS account.

Tax Deductions in NPS

If you voluntarily contribute to NPS, you can claim a deduction under section 80C of the Income Tax Act. For this, you have to use the old regime of income tax. As an employee, if you contribute up to 10% of your basic salary plus dearness allowance, you can claim deduction under section 80CCD(1). You can also contribute to NPS as an individual. It is not necessary to contribute as an employee. However, your deduction will not exceed the limit of Rs 1.5 lakh available under section 80C. Apart from this, you can claim an additional tax benefit of Rs 50,000 under section 80CCD(1B). People are generally aware of these two benefits.

Very few employees take advantage of the tax benefits available under the corporate scheme. The reason for this is that people are not aware of these benefits. With the help of section 80CCD(1B), you can reduce your tax liability significantly. The condition is that for this your employer has to contribute to your NPS account. This benefit is available in both old and new regime of income tax.

Who can invest?

Resident Indians, NRIs and Overseas Citizens of India (OCI) can register themselves as NPS subscribers under the Corporate Scheme. Any person between the age of 18 to 70 years can register himself in the corporate scheme through his employer. If you are already registered as an NPS subscriber, you can share your Permanent Retirement Account Number (PRAN) with your employee. He can make his contribution to your account through this.

So if you are a salaried employee and your cost-to-company structure is such that the employer contributes to your NPS, you will be eligible for a deduction of up to 10% of your basic salary (basic plus DA). If you are a government employee then this deduction will be more 14%. You will continue to get deduction under section 80CCD(1) and 80CCD(1B) on your own contribution.

Many types of deductions and exemptions have been abolished in the new income tax regime. But even in the new regime, the tax exemption on employer’s contribution to NPS has been retained. If you select the old regime, then you will be allowed a deduction of up to Rs 1.5 lakh under section 80C. You can also claim a deduction of Rs 50,000 under 80CCD(1B).

It is important to note that your employer can contribute to your NPS account in addition to his own contribution to your EPF account. There is no compulsion on the employee and the employer to choose between the two.

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Now let us see what are the tax benefits on investing in NPS:-

Tax benefit on investment in Tier-I account under old tax regime

-Tax benefit u/s 80CCD(1) u/s 80CCD(1) up to a maximum of Rs 1.5 lakh in Tier-I account in NPS or 10% of annual salary (basic salary plus DA) for salaried/salaried individuals and non-salaried/self-employed For a maximum of 20% of the gross total income, whichever is less, the benefit of tax exemption ie deduction is available on the investment. For example, if your salary (basic salary plus DA) is 20 lakhs and you contribute 2 lakhs to NPS. But you can get exemption under 80CCD(1) only up to a maximum annual investment of Rs 1.5 lakh.

One more thing 80C (Life Insurance, PPF, NSC, Senior Citizen Savings Scheme, SSY, Bank / Post Office FD, NPS, ULIP, Term Plan, ELSS, Repayment of principal amount of home loan, tuition fees of two children …..etc) , 80CCC (Annuity/Pension Plan) and 80CCD(1) tax exemption can be availed only on annual investment up to a maximum of Rs 1.5 Lakhs.

Tax benefit under 80CCD (1b)

Under 80CCD (1b), investment of Rs 50,000 in NPS Tier-I account is tax exempt in addition to the limit / limit of 80CCD (1). Overall, you can get tax exemption on investment up to a maximum of Rs 2 lakh in NPS in a financial year. Even if you have invested up to a limit of Rs 1.5 lakh annually under 80C and 80CCC, you can still get a separate tax exemption on investment of Rs 50,000 in NPS under 80CCD (1b).

Tax benefit under 80CCD (2)

Under 80CCD (2), there is also a provision for tax exemption on the contribution made by the employer to the NPS for the employee. But the tax exemption will be available only on the contribution of 10 percent of basic salary plus DA for private employees and up to 14 percent of basic salary plus DA for government employees. Deduction under 80CCD(2) is available only to salaried individuals.

Tax benefit on investment in Tier-II account

For central government employees, a provision has been made for tax exemption under 80C on the maximum investment amount of Rs 1.5 lakh in Tier-II account. Provided the lock-in period of the investment is at least 3 years.

Tax benefits under the new tax regime

In the new tax regime, there is a provision of tax benefit under 80CCD(2) only. This means deduction is available on the contribution made by the employer to the NPS for the employee. But this benefit will be available to the private employee only on the amount contributed by the employer up to 10% of his basic salary. While for government employees, on the contribution of 14% of the basic salary plus DA from the employer.

Tax treatment on NPS

NPS is also in EEE ie exempt-exempt-exempt category like PPF (PPF), EPF (EPF) and SSY (SSY). Means where there is no tax on deposit, no withdrawal and no interest received. Means there is tax exemption on maximum 60% withdrawal. In NPS, only 60% of the total maturity amount is allowed to be withdrawn. The remaining 40% of the maturity amount has to be invested in an annuity/pension plan.

Tax on annuity

Although the amount invested in annuity is tax-free, there is no tax exemption on regular income/pension received as returns under annuity. This means that the regular amount received as a return is added to the annual income of the investor and the taxpayer has to pay tax according to the tax slab.

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The committee constituted to review the existing pension system ‘NPS’ for government employees is currently in the process of consultation with the stakeholders and its report has not been finalized yet. The Finance Ministry had constituted the committee in April under the chairmanship of Finance Secretary TV Somanathan to review the pension scheme for government employees and suggest necessary changes in the existing design and structure of the National Pension System (NPS).

Finance Ministry

Now the ministry said in a tweet, “The Somanathan Committee is in the process of consultation with the relevant stakeholders and has not yet arrived at any conclusion.” As per the terms of formation, this committee will be constituted for government employees covered under NPS. Will suggest the measures needed to improve the pension benefits of the These suggestions will be given keeping in view the fiscal impact and impact on overall budgetary provisions so that fiscal strength is maintained.

The old pension scheme headed by the Finance Secretary, includes Secretary, Department of Personnel and Training, Special Secretary, Department of Expenditure and Chairman, Pension Fund Regulatory and Development Authority (PFRDA) as members. In the last few months, several state governments ruled by the opposition have decided to implement the ‘Old Pension Scheme’ (OPS). Enthused by this, employee organizations in some other states have also raised their demand.

OPS

The State Governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have informed the Central Government about their decision to implement OPS and have requested it to return the amount deposited under NPS. As far as the demand for implementation of OPS at the Central Government level is concerned, the Finance Ministry has completely denied this possibility. It was informed by the Ministry in Parliament that no proposal is under consideration to implement OPS in respect of Central Government employees recruited after January 1, 2004.

Government employees retiring under Pension OPS used to get 50 per cent of their last drawn pay as monthly pension. This amount keeps increasing with the increase in the rates of dearness allowance. NPS has been made applicable to all government employees except Armed Forces employees joining the Central Government after January, 2004. Most of the state and union territory governments have also adopted NPS as a pension system for their new employees.

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There is big news for pensioners. If you are also taking advantage of NPS, then now it has been decided by the government to change its rules. National Pension System is a kind of investment plan. Under this scheme, the account holders get the benefit of lump sum amount and pension every month after retirement.

PFRDA gave information

Let us tell you that there is no provision for withdrawal before retirement in NPS, but you can withdraw money under certain rules. Information about this has been given by PFRDA. PFRDA has changed some new rules regarding partial withdrawal from NPS this year.
Nodal officer will have to apply
After January 1, 2023, for partial withdrawal, you will have to apply to the concerned nodal officer. Apart from this, you can apply online also. Only NPS account holders, Central, State and Central Autonomous Bodies are getting the benefit of this facility.

What did the chairman of PFRDA say?

Giving information, PFRDA Chairman Deepak Mohanty has told that many people have requested why we cannot continue with the fund. Why should I take annuity when my money is giving me good returns? I would like to withdraw my money on monthly or quarterly basis. Right now we cannot provide such an option. In such a situation, we are considering such a product.

At present, National Pension Scheme (NPS) members withdraw up to 60 per cent of the retirement corpus as a lump sum after the age of 60, while the remaining 40 per cent of the corpus is compulsorily ‘annuity’ (fixed amount paid every year) goes in. Whereas a systematic withdrawal plan will allow NPS members to opt for periodic withdrawals till the age of 75 years. Subscribers can opt for monthly, quarterly, half-yearly and yearly withdrawals.

Withdrawal process will be completed in just 2 days

According to the circular issued by PFRDA, the time limit for withdrawal from NPS has been reduced from T4 to T2. That is, now instead of 4 days, the process of withdrawal will be completed in just 2 days.

What is the specialty of this scheme-

>> If you go to withdraw money from NPS account, then you can withdraw only three times.
>> Let us tell you that you can withdraw only 25 percent of the total contribution.
>> Partial withdrawal can be made from National Pension System for higher education of children, marriage of children, purchase and construction of flat, serious illness.

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If your account has become active under NPS i.e. National Pension System, then it can be reactivated again. National Pension System is a retirement saving scheme. If you want to take advantage of the National Pension System, then the closed account can be started again. Know how you can do this.

How to unfreeze?

To unfreeze the account, the customer has to pay the total minimum amount for the period of freeze. Minimum contribution for the year in which the account is reactivated along with a penalty of Rs.100/- has to be paid. To unfreeze an account, the customer has to visit the Point of Presence (POP) and deposit the required amount.

These documents will be required –

• PAN card,
• identity card,
• Address proof,
• passport size photos,
• reactivation form,
• You can also get this form from the official NPS website.

You have to fill the form properly with all the required documents. Sign and submit the form with all the information like PRAN, reason for activation and personal details. You will also have to submit KYC documents and passport size photographs along with the form. When the complete form is filled, you can submit the form by going to the POP-SP office. You will have to pay a nominal fee to reactivate the NPS account. Information regarding fee will be available from POP-SP. When you make the payment, take the receipt for it.

Minimum contribution required

The minimum contribution at the time of account opening is Rs.500 for Tier I and Rs.1000 for Tier II. The minimum contribution amount is Rs.500 for Tier I and Rs.250 for Tier II. 6000 for Tier I and the minimum annual contribution is Rs. 2000 for Tier II is Rs.

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Meanwhile, once again a positive aspect has emerged from the government on the demand of the old pension scheme. In such a situation, it is believed that the process for the old pension scheme can be started soon in the state.

Discussion on restoration of old pension scheme

In fact, since the change of power in Bangalore, Karnataka, the Congress has been busy in fulfilling all the promises made by it. Meanwhile, Chief Minister Siddaramaiah was met by the employees’ union. Meanwhile, Chief Minister Siddaramaiah has assured that the Congress government will discuss the restoration of the old pension scheme in the next cabinet meeting.

The Chief Minister was holding a meeting with the State Government Employees Union. Speaking in the meeting with whose delegation, he said that the announcement of the scheme can be considered in the meeting of the government on 7th July.

Labor union demands

In fact, under the new pension scheme in Karnataka, the employees are being given the benefit of the pension scheme. The same employee union president Shantaram Teja says that by canceling the new pension scheme, Rs 19,000 crore available under the scheme can be used for government development programmes. He said that out of this the government share of 10000 crores can be used for development work and that the grant of 9000 crores should be converted into GPF. Let us tell you that this scheme was closed on 31 March 2004 in the state.

OPS-NPS Advantages

Under the old pension scheme, half of the last drawn pay and dearness allowance are provided to government employees twice a year after their retirement. At the same time, under the new pension scheme, employees contribute 10% of their salary. After which, after investing in various funds, the employees get returns on investment after retirement.

Earlier in the assembly elections, the Congress had said in its announcement that the old pension scheme would be extended to the employees who joined after 2006. After its inclusion in the manifesto of the Congress for the assembly elections, the preparations for the implementation of the old pension scheme in the state can now be started by the state government after the cabinet meeting. Earlier, states like Rajasthan, Himachal, Chhattisgarh, Jharkhand have abolished NPS and implemented OPS.

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The Pension Fund Regulatory and Development Authority (PFRDA) is now going to provide systematic withdrawal option to the subscribers, eliminating the requirement of one-time withdrawal of 60 per cent of the total deposits. When the new rules come into force, the subscribers will be able to withdraw their money from time to time on monthly, quarterly, half-yearly or yearly basis till the age of 75 years.

Under the current rules, when the NPS subscriber turns 60, he can withdraw up to 60 percent of the lump sum retirement corpus. The remaining 40 percent of the corpus essentially goes into buying an annuity. Pension is received from this annuity. Subscriber can keep his entire amount in NPS account till the age of 75 years. He also gets the facility of phased withdrawal of 60 percent of his capital on an annual basis. For this one has to apply every year.

Will get more withdrawal options

According to media report, PFRDA Chairman Deepak Mohanty says that the pension fund regulator will no longer allow NPS subscribers to withdraw 60 per cent of the corpus in lump sum, instead of allowing subscribers till the age of 75 years. Is going to offer the facility of withdrawing money on monthly, quarterly, half-yearly or yearly basis.

The Systematic Lumpsum Withdrawal (SLW) option will greatly benefit the subscriber. In this way, from time to time, after partial withdrawal, the subscriber will get the return on the amount deposited.

Tier-I and Tier-II accounts will get this facility

Mohanty says that NPS subscribers can opt for systematic lumpsum withdrawal option for the next 15 years after retirement. On choosing the Systematic option, the NPS subscriber will continue to receive monthly, quarterly or half-yearly amounts till the age of 75 years. This facility will be provided for both Tier-I and Tier-II accounts. For Tier II account holders also lump sum withdrawal option can be started before turning 60 years.

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Pension Fund Regulatory and Development Authority (PFRDA) chairman Deepak Mohanty said that National Pension System (NPS) subscribers are expected to get the option of Systematic Lumpsum Withdrawal (SLW) by the end of this quarter. Systematic lumpsum withdrawal feature will allow NPS subscribers to opt for periodic withdrawals on monthly, quarterly, half-yearly or yearly basis till the age of 75 years.

Current rules for NPS withdrawal

At present, an NPS subscriber can withdraw up to 60 per cent of the retirement corpus as a lump sum when he turns 60. The remaining 40 percent of the corpus essentially goes into buying an annuity. NPS subscribers also have the option to defer the lump sum withdrawal till the age of 75 years.

NPS investors also get the option of phased withdrawals annually while postponing the lump sum withdrawal. Under this, the NPS subscriber can make partial withdrawals on an annual basis, but he has to submit an application every year.

NPS subscribers can opt for period pension

Pension fund regulator is now going to give NPS subscribers the option of withdrawal on monthly, quarterly, half-yearly or yearly basis till the age of 75 years instead of not allowing NPS subscribers to withdraw 60 per cent of the corpus Is. Despite this withdrawal option, the remaining NPS corpus will continue to be invested and returns will continue to accrue till the corpus is fully withdrawn.

Systematic withdrawal facility for Tier-I and Tier-II accounts also

Deepak Mohanty, chairman of the Pension Fund Regulatory, told that when NPS subscribers retire at the age of 60, they can take 60 percent in one go. Apart from this, he can choose the Systematic Lumpsum Withdrawal option for the next 15 years. On choosing the Systematic option, the NPS subscriber will continue to receive monthly, quarterly or half-yearly amounts till the age of 75 years. He said that this facility will be provided for both Tier-I and Tier-II accounts. For Tier II accounts, the Systematic Lump Sum Withdrawal option can be initiated before the subscriber turns 60 years old.

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Apart from this, in many states, the employees have started agitation for the implementation of old pension. The Ashok Gehlot government of Rajasthan was the first to restore the Old Pension Scheme (OPS). But here an order has been issued by the Rajasthan State Road Transport Corporation (RSRTC) to implement the old pension (OPS) for the employees.

Such employees are not eligible for old pension

Issuing an order in this regard, it was said that such employees who have resigned from their posts or who have been fired. Such employees will not be eligible for old pension. According to the order of the government, the employees who want to select the option of old pension, they will have to apply by June 30, otherwise they will be considered as members of the CPF scheme.

Family members can also apply

for family pension Family members of deceased employees can also apply for OPS. State Finance Department has already issued an order to implement old pension for employees working in Boards, Corporations, Autonomous, Semi-Autonomous Bodies and Universities (Established on or after January 1, 2004) .

According to a senior official of the Finance Department, such employees who will not select the option of old pension, their contribution will be done according to the pattern of universities. That is, 12% will have to be paid each from the employer’s share and the employee’s share. The employer’s share will go to the pension fund and the employee’s share will go to the GPF fund.

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Now if you also want to take advantage of old pension, then you have a good chance. You will have to decide in the coming 60 days whether you want to be in New Pension Scheme or want to select OPS. Regarding this, SOP has also been issued by the government.

Option to be chosen in 60 days

The government has asked the employees to opt for pension within 60 days. Tell that the beneficiaries of the state government, Himachal Pradesh are getting this facility. State employees are getting the benefit of the old pension scheme from 1 April 2023. Along with this, if anyone has retired earlier, then he will not get the old money in the form of arrears.
Government issued order

After a long wait, the Finance Department of Himachal Government has issued Standard Operating Procedure (SOP) to implement OPS. The Chief Secretary of the state has issued an order in this regard.

Will get the benefit of NPS if not selected

If any employee does not choose his pension option by the prescribed time limit, then those people will be kept in NPS only. Along with this, all the employees who will be covered in OPS will also be covered under General Provident Fund Central Service Rules 1960. On the other hand, if any employee selects NPS, then he will also have to deposit the share of NPS on April 1.

What are the advantages of old pension scheme?

Talking about the benefits of the old pension scheme, its biggest advantage is that it is made on the basis of the last drawn salary. Apart from this, as the inflation rate increases, DA also increases. Even when the government implements the new pay commission, it increases the pension.

OPS has already been implemented in many states, Rajasthan ranks first among the states to implement old pension scheme. After this, the governments of Rajasthan, Punjab, Chhattisgarh, Jharkhand and Himachal Pradesh have also restored the old pension scheme.

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There is no provision for withdrawal before retirement in NPS, but under certain conditions the amount can be withdrawn from it. Pension Fund Regulatory and Development Authority has changed some new rules this year regarding partial withdrawal from NPS.

NPS account holders, employees of the Center, State and Central Autonomous Bodies, will have to apply for partial withdrawal from January 1, 2023, to the concerned nodal officer.

Online withdrawal is allowed for partial withdrawal. On the other hand, NPS members of private sector will continue to get online facility of partial withdrawal.

According to a circular issued by PFRDA, the time limit for withdrawal from NPS has been reduced from T4 to T2. This means that now instead of 4 days, the withdrawal process will be completed in just 2 days.

If you go to withdraw money from NPS account, then you can withdraw only three times. Also, only 25 percent of the total contribution can be withdrawn.

Withdrawal from NPS Partial withdrawal can be made for higher education of children, marriage of children, purchase and construction of flat, serious illness etc.

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There is good news for the government employees and pensioners of Himachal Pradesh. The old pension scheme has come into force in the state from April 1, 2023, and a final decision can be taken on the issue of SOP on Wednesday. Its benefit will be given to 1.36 lakh employees-pensioners of the state. It is believed that after the municipal elections, the final notification regarding the restoration of old pension will be issued.

Actually, today on Wednesday, a cabinet meeting has been called under the chairmanship of CM Sukhwinder Singh Sukhu. It is expected that in this meeting, the SOP to be issued regarding the restoration of the Old Pension Scheme (OPS) may be approved.

There can also be a discussion on making a policy to fill the posts of teachers. Apart from this, many other agendas including filling of vacancies in various departments, water cess can also be approved in the meeting. Many budget announcements can also be approved in the cabinet meeting.

NPS deduction stopped, increased salary reached in the accounts of employees

After the implementation of OPS in the state from April, the deduction on the share of NPS has also been stopped. This time, the share of NPS has not been deducted from the salary of any government employee for the month of April, but the employees have started getting increased salary, that is, the share of NPS of any employee is deposited in PFRDA, an agency of the Government of India. Not sent to.

Since till now the NPS share was being deducted from the salary of the employees after the year 2003 in the state, 10% salary was being deducted from their salary every month and the state government was also contributing 14% of its share. In this way, 24 percent of the total contribution was being deposited with the PFRDA of the Central Government.

GPF account opening process will start soon

After the closure of NPS share deduction, now the process of opening GPF accounts of the employees is likely to start soon. The notification of SOP is also likely to be issued after the cabinet meeting to be held today.

It is estimated that the SOP for restoration of old pension will be issued in May and options will be asked from the employees to choose one of the two pensions. The decision will benefit both serving and retired employees and employees with 20 years or more service will get 50 per cent of basic pay plus DA as pension.

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PFRDA, a regulatory body for the overall supervision and regulation of pensions in India, said, “In the interest of the subscribers and to benefit them with timely payment of annuity income, the uploading of documents shall be mandatory from April 1, 2023.”

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What are the new changes for NPS subscribers?

PFRDA has asked NPS subscribers to upload these documents. For parallel processing of withdrawal and annuity, certain withdrawal and KYC documents need to be uploaded. The list of those documents are:

• NPS Withdrawal / Exit Form
• Proof of identity and address as mentioned in the withdrawal form
• proof of your bank account
• Copy of Permanent Retirement Account Number (PRAN) Card

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If your monthly contribution is Rs 3,000 and you are 34 years old, you still have 26 years to make pension account payments. Considering an estimated 10% annual ROI or rate of interest. With a total principal investment of Rs 9.36 lakh in NPS, you will get Rs 44.35 lakh on maturity as per NPS calculation.

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In the emergency before retirement, up to 60 percent of the amount can be withdrawn from the amount deposited in this fund. If an employee does not want to invest further in this scheme, then he can easily exit from it.

If you want to exit from NPS, then you get 3 different options for this. Normally exit takes place on completion of 60 years of age. The second option allows you to exit on your own before the completion of 60 years and the third option allows you to exit in case of sudden death of an account holder.

What are the exit rules from NPS?

After retirement, till the age of 75 years, the subscriber can choose lump sum or annual withdrawal ie pension option to exit NPS or can also postpone both. After 75 years, they have to exit from this scheme. However, its default option allows annual withdrawal of a minimum of 40 percent of the deposit amount and one-time withdrawal of the remaining 60 percent. At the same time, the customer also has the option of annual withdrawal of the entire amount.

How can I exit online?

You get both offline and online options to exit from NPS. To exit online, you can process your request through OTP or e-sign. According to PFRDA, in the online process, customers will be able to log in to the Central Record Keeping Agency (CRA) system and submit an exit request. Here they have to submit the details related to the exit.

Charges will have to be paid for processing the request

In this, customers can choose the option of lump sum or annual withdrawal. For this, the customer has to provide details of fund allocation, Annuity Service Provider (ASP), Annuity Scheme etc. Along with this, KYC and other documents will have to be uploaded.

After this POP also verifies the customer bank account number and uploaded documents with the help of ‘Instant Bank Account Verification’. To process this request, the customer also has to pay its charges. These charges are 0.125 percent of the total fund, which can be a minimum of Rs 125 and a maximum of Rs 500.

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NPS scheme does not allow pension shortage in old age. Although some of its charges also, about which you should know. Let us know what are the charges you have to pay for NPS service.

• On registering for the first time, you will have to pay a charge of Rs 200 to Rs 400.
• 0.50% of the contribution for initial contribution and final contribution, with a minimum of Rs.30 and a maximum of Rs.25,000
• e-NPS 0.20% of contribution for continuous contribution, minimum Rs 15 and maximum Rs 10000 is applicable for all NPS accounts.
• Rs 30 is charged for all non-financial transactions

Persistence fee 

For annual contribution between Rs 1000 to Rs 2999, a persistence fee of Rs 50 is charged every year and the mode of deduction will be through cancellation of units. Rs 75 will be charged for amount between Rs 3000 to Rs 6000 and Rs 100 for more than Rs 6000. The processing fee for withdrawals and exits will be 0.125% of the corpus or minimum of Rs.125 and maximum of Rs.500.

How many types of NPS accounts are there 

Tier I and Tier II are two types of accounts in NPS. Tier I is an individual pension account, which is a default pension account and tax free facility is provided on it. Whereas Tier II is an alternative investment account, in which you must have a Tier 1 account before investing. Tier 2 is not a pension plan. You can invest as much money as you want in this.

Tax rules under NPS 

NPS contribution is exempt under section 80 CCD deduction. Whereas, under 80CCD 1(B), a deduction of Rs 50,000 can be made. This deduction can be done under NPS Tier 1 account.

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This will benefit 1.36 lakh state government employees, who will not face cuts under the National Pension Scheme (NPS). The Chief Secretary of the state issued a notification to implement the OPS on Monday.

Old Pension Scheme Latest News The notification states that as per the decision of the cabinet to implement the old pension scheme, the contribution (employer’s and employee’s share) of the state government employees covered under the National Pension System will be stopped from April 1, 2023. will be given.

The restoration of OPS was one of the key promises of the Congress in the 2022 assembly elections and a decision in this regard was taken in the first cabinet meeting on January 13, 2023.

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In such a situation, it is being speculated that the Modi government can also give green signal to the formation of the Eighth Pay Commission. The 8th Pay Commission is to be constituted in 2023 itself. The Pay Commission was constituted only in 2013 when the recommendations of the Seventh Pay Commission were implemented in 2016. The recommendations of the new Pay Commission are implemented after every 10 years.

Last year in August 2022, when the question was asked to the Finance Minister whether the Modi government would also give a green signal to the formation of the Eighth Pay Commission. The Pay Commission is to be constituted in 2023 itself. Then, while answering this question, Minister of State for Finance Pankaj Chaudhary had said that there is no proposal before the government to set up the 8th Pay Commission.

The Minister of State for Finance had given this answer in writing to the question asked during the Question Hour. Although it is not that easy either. Because the National Pension System, about which the Modi government was not getting confused, during the passage of the Finance Bill in the Lok Sabha, Finance Minister Nirmala Sitharaman announced that it has been decided to further improve the National Pension System for government employees.

And for that they have decided to form a committee under the chairmanship of the Finance Secretary. This decision of the Finance Minister was surprising.

The Lok Sabha elections to be held in 2024 are just a year away and the vote of the government employees is very important for the ruling party, in such a situation, a committee has also been formed to improve the National Pension System.

In such a situation, it is believed that the Modi government can also give a green signal to the formation of the Eighth Pay Commission. Before the Lok Sabha elections, the government cannot buy the displeasure of the government employees by not constituting the Pay Commission. Opposition parties can make it a big election issue like NPS.

There was already a tussle between the Center and the states ruled by the opposition parties regarding the National Pension Scheme. The old pension scheme was reinstated in Congress ruled states like Himachal Pradesh, Rajasthan, Chhattisgarh. After which the government has constituted a committee to review the NPS. That’s why it is being speculated that the government can also constitute the Eighth Pay Commission.

Let us tell you that since 1947 many Pay Commissions have been formed. The government constitutes a new pay commission every 10 years. On the basis of whose recommendations the salary of central employees and pension of pensioners are increased. The Seventh Pay Commission was constituted by the UPA government on 24 February 2014. In 2006 and 2016, the Sixth and Seventh Pay Commission had recommended a big hike in the salaries of central employees and the governments, accepting it, also increased the salaries of government employees.

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The committee will suggest whether any changes are necessary in the existing structure of the National Pension System (NPS) applicable to government employees. The committee will suggest modifications with a view to improve the pensionary benefits of government employees covered under NPS, keeping in view the fiscal implications and the overall budgetary impact.

4 members in the committee

Headed by Somanathan, the committee will have Secretary, Department of Personnel and Training (DoPT), Special Secretary, Department of Expenditure and Chairman, Pension Fund Regulatory and Development Authority (PFRDA) as members.

Finance Minister had announced

Finance Minister Nirmala Sitharaman had said last month that a committee headed by the Finance Secretary would look into pension related issues under NPS for government employees.

Employees organizations are demanding OPS restoration

This announcement has come in the backdrop of many non-BJP states restoring the Old Pension Scheme (OPS) and employees organizations in some other states demanding the same. The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have requested to return the accumulated funds under NPS while notifying the Center about their decision to restore the old pension scheme.

The finance ministry had told Parliament last year that it was not considering any proposal to restore OPS in respect of central government employees recruited after January 1, 2004.

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He has decided to set up a committee under the Finance Secretary to look into the issue of pension. The committee will put forward such an approach on pension which can meet the needs of the employees while maintaining fiscal prudence. This approach will be equally designed for both the central and state government.

When was NPS implemented

The existing National Pension Scheme, or New Pension Scheme, was launched in 2003 and came into force on January 1, 2004. Unlike the old pension scheme, NPS was based on a contributory system on which the pension amount was provided by the government. It was introduced to provide old age income security and convert small savings into investments in a financially stable manner.

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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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According to the new rules, you will be required to provide some documents. If a subscriber does not submit the required documents then he will not be able to withdraw his money from NPS.

PFRDA i.e. Pension Fund Regulatory and Development Authority ordered all the nodal officers to compulsorily upload the documents of the subscribers. If there is any mistake in these documents, then the money of the NPS subscriber will stop.

Let us tell you that according to the government circular, the NPS subscriber will have to submit documents, which include NPS exit / withdrawal form, ID and address proof, bank account proof, copy of PAN card. Also, before maturity from NPS, you can withdraw money for higher education of children, their marriage, construction or purchase of house and treatment of serious diseases. On the other hand, an investor in NPS can withdraw money only 3 times during the entire tenure.

Let us tell you that people from the age of 18 to 60 years can invest in NPS. This is a scheme launched by the Central Government in which investors can invest in both equity and debt. Apart from this, you can select the option of 75% equity investment in it. Whereas, after the completion of the tenure of the scheme, you can withdraw 60% of the total deposit amount. You can keep 40% of the money as an annuity, so that after 60 years you will get pension.

Actually, NPS is an investment plan for the long term. By investing in it, you can create a huge fund on retirement. Not only this, people investing in this scheme get a benefit of Rs 50 thousand under 80-CCD (1B) of income tax and Rs 1.5 lakh under 80-C.

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That’s why people have to settle many financial tasks before 31st March. This includes work ranging from Income Tax Return to Investment. Therefore, before the end of the month of March, you should complete these four tasks related to finance as soon as possible.

PAN-Aadhaar Link

The last date to link PAN card with Aadhaar is 31 March 2023. After this date, such PAN cards will be deactivated, which will not be linked to Aadhaar. The Income Tax Department has clearly said that if someone does not link his PAN and Aadhaar by March 31, 2023, his PAN card will become inoperative.

Every time the date for linking PAN with Aadhaar was extended, but the Income Tax Department is not in the mood to extend the deadline this time. The Central Board of Direct Taxes (CBDT) has fixed a late fine of Rs 1000 for linking PAN with Aadhaar after June 30.

Updated ITR

The last date for filing updated income tax return for FY 2019-20 or Assessment Year 2020-21 is March 31, 2023. If any taxpayer feels that the discrepancy mentioned in the e-verification is correct, then he can send a reply to the Income Tax Department for the same. Along with this, taxpayers can also file updated returns.

Investment in savings scheme

The current financial year is about to end in a few days. So if you are a taxpayer, complete the work of investing in savings schemes to save tax. Under Section 80C of Income Tax, a rebate of up to Rs 1.50 lakh is available on investment. You can avail tax deduction by investing in Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme, Public Provident Fund and National Pension Scheme. Apart from this, you can also invest in tax saving fixed deposit scheme.

On the other hand, if you have already invested in these schemes, then the last date for annual deposit is also March 31, 2023. In savings schemes, the amount has to be deposited once a year. Therefore, the fixed amount should be deposited before the end of the financial year.

LIC policy with high premium

If you want to avail tax deduction on LIC policy with high premium, then it has to be subscribed before 31st March. After March 31, 2023, there will be no exemption on this. According to the new income tax rules applicable from April 1, 2023, income from life insurance policies above the annual premium of Rs 5 lakh will be taxable. But, if you buy an insurance policy with an annual premium of more than Rs 5 lakh before March 31, 2023, it will not come under the new income tax rule.

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However, most taxpayers make use of Section 80C of the Income Tax Act for tax-savings. Under this, there are about a dozen such options, in which tax-savings can be done by investing. These include PPF, NPS, ELSS, Life Insurance Policies etc. But, we are telling you about such ways to save tax, which do not require any kind of investment to take advantage of them.

Tuition fees

Individual taxpayers can claim deduction on tuition fees under section 80C of the Income Tax Act. This facility is not available to HUF. You can claim this deduction on the tuition fees of two children. Tuition fee refers to the total tuition fee to be paid in a financial year.

If you do a job, you have to submit the investment proof to the finance department of your company by the first or second week of January every year. You can take the Tuition Fee Payment Certificate from the school and give it at your office. This will result in good tax-savings for you.

Education scholarship

The scholarship amount received for education is exempt from tax under section 10(16) of the Income Tax Act. Tax experts say that the scholarship received from the government or any trust is exempt from tax.

Contribution to Political Party/Charitable Organizations

If you make any kind of contribution to any political party or charitable organization, then you can claim tax deduction on it. This deduction facility is available under section 80GGC of the Income Tax Act.

Education loan

If a student has taken an education loan, then a deduction can be claimed on the interest amount. This deduction can be claimed under section 80E of Income Tax. You just have to keep in mind that this deduction is available only on the interest part of the EMI. Deduction cannot be claimed on principal.

Rent paid

If you are employed and do not get House Rent Allowance (HRA), you can claim a deduction on the rent you pay. This deduction is available under section 80GG of the Income Tax Act. Self-employed individuals can also claim this deduction. To take advantage of this deduction, it is necessary to submit Form

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Along with this, your future is also secured. NPS is ac to invest for retirement. After retirement, a fat fund is prepared for your future. NPS is managed by PFRDA i.e. Pension Fund Regulatory and Development Authority. Why should you invest in NPS, let’s understand it in 5 points. 

1>> NPS Investment ie investing in NPS gives the benefit of deduction under section 80C, whose limit is Rs 1.5 lakh.

2>> Tax benefit is also available under section 80CCD (1B) on NPS investment. This benefit is different from the benefit available under section 80C. A deduction of Rs 50,000 is available under this section. In this way, a total tax benefit of Rs 2 lakh is available.

3>> Tax benefit is also available on NPS under 80CCD(2). Under this section, if an employer deposits money in the NPS account of his employee, then the employee gets tax exemption. The benefit of this section is available in addition to section 80C. Its limit can be up to Rs 7.50 lakh or 10% of the salary.

4>> National Pension System comes under “EEE” category. Tax benefit is available on investment. The return and maturity amount are also completely tax free.

5>>NPS is one of the cheapest pension scheme in the world. The benefit of compounding is available in the long run. Due to this, a big corpus is prepared for your future. At least 500 rupees can be invested in this.

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It will be mandatory to give some documents under this rule. If the subscribers do not upload these documents then they will not be able to withdraw money from NPS. In the circular issued on February 22, it has been said that it will be mandatory to give KYC documents to the subscribers. PFRDA has asked the nodal officers and subscribers to ensure mandatory uploading of these documents. If any kind of mistake is found in these documents, then the money of NPS can be stopped.

What documents will be required 

Before withdrawing, you must ensure that you have uploaded the NPS withdrawal form or not. The information in the withdrawal form should be filled according to the identity card and address proof. There should also be a copy of bank account proof, PRAN or Permanent Retirement Account Number card. If any of these documents is not uploaded then money cannot be withdrawn from NPS.

Upload documents like this 

• Login to upload documents on CRA system.
• Can send request for login based on e-sign, OTP authentication.
• Information like address, bank details, nominee details will be auto uploaded during the request.
• Now the subscriber has to select lump sum annuity amount and details.
• After this your bank account will have to be verified.
• Also request for uploading of KYC documents as proof of identity and address, PRAN card and bank proof.
• Must have scanned document and scanned photograph.
• Subscriber can complete the process using OTP authentication and e-sign with the help of Aadhaar.

What is the rule for withdrawing money from NPS? 

Currently, NPS subscribers can withdraw up to 60 per cent of the total corpus in a lump sum. Whereas 40 percent of the corpus can be utilised. Suppose if your total NPS corpus is Rs 5 lakh, then after completion of maturity, the subscriber will be able to withdraw 60% of this amount. On the other hand, if you withdraw before maturity, you will need to buy annuity from 80 percent of the corpus.

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Meanwhile, now a demand is being made on behalf of the railway employees to implement the Old Pension Scheme. Many states have already decided about this and they have also started it in their states. Meanwhile, a big statement has come from Union Finance Minister Nirmala Sitharaman. The Finance Minister clearly said that the money of the New Pension Scheme (NPS) cannot be given to the state governments for old pension (OPS).

In a post-budget discussion at a hotel in Jaipur, Sitharaman said that if a state government has decided to restore old pension thinking that it will get NPS money from the Centre, Rajasthan government is demanding transfer of money . , then it will not be found. Let us tell you that the Old Pension Scheme has been implemented in Rajasthan from April 1, 2022. Only after that the Congress government of the state is demanding to transfer the money deducted under the New Pension Scheme (NPS).

The money will be given to the employees only.

After this, the old pension scheme was implemented by the Himachal government on the lines of Rajasthan. The Finance Minister clarified that the money deducted from the salary under NPS belongs to the employees. This will be given to them at the time of retirement or when the employee needs this money, it will be given to them. The money collected will not be given in the hands of the state governments. When the right time comes, then it will be given to the employees.

Finance Minister spoke on free schemes

In response to the question of free schemes given by the state government, Sitharaman said, ‘When the financial condition of the government is good, you run such schemes. Make provision for them in your budget. If the economic condition of your state is not good, then you are not making provision in the budget, for that you are taking loan. This is not correct. Who will give this money?’

He said, to bring such schemes, the states should raise money from their own resources, should earn from tax. States are passing their burden on someone else to run free schemes… This is totally wrong.

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The demand of these employees and pensioners was to restore the old pension. Before this, many state governments have restored the old pension. The Chief Minister of Chhattisgarh, Bhupesh Baghel, who restored the old pension, recently demanded to restore it across the country during an interview.

Gave a statement moving away from the party line

Now a big update came in the demand of old pension being made by the employees when BJP MLA Gaurishankar Bisen in MP gave a statement moving away from the party line. Former Agriculture Minister Bisen attacked against his own government. During this, he said that even if he is expelled from the party or removed from his post, the old pension scheme should be restored.

Take my voice to Delhi…

He said, just as husband needs wife and wife needs husband in old age, in the same way old age pension is necessary for the employees. Take my voice to Delhi… Give old pension to lakhs of comrades… It doesn’t matter if the party will expel me, take away my post. But if the stove in your house does not burn, it will make a difference.

Guaranteed pension should be given at 50% On the other hand sources have claimed that Modi government is planning to find a middle way on the demand of old pension. As a first option, it is being considered by the government that the government employees should be given guaranteed pension at about 50% of the last salary received under NPS. With the implementation of this rule, changes can be made in the existing NPS without putting much burden on the exchequer.

Sources claim that the officials have made such a plan that there may be a change in NPS in such a way that after retirement, the employee will get 41.7% of the amount as a lump sum and the remaining 58.3% on the basis of annualization. An analysis has also shown that if the 58.3% corpus made up of Central/State Government contribution (14%) is annuitised, the pension in NPS can be around 50% of the last drawn salary. So far no official statement has been given by the government on this.

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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 government can adopt some different methods to provide relief to the middle class people from inflation. For this, experts are also expressing the hope that these 5 announcements will be made in the budget. Maximum income tax comes from the salaried class only. In such a situation, even if the Finance Minister announces an increase in the tax limit, it will not be surprising. Apart from this, the standard deduction is also expected to increase.

Tax limit will increase

Inflation is increasing day by day. In such a situation, the cost of living is also increasing. In such a situation, the government can give income tax exemption of five lakh rupees to income tax payers under the new tax system. At present, 5% tax has to be paid on income of Rs 2.5 to Rs 5 lakh and 20% tax on income of Rs 5 to 7.5 lakh.

Standard deduction will change

The salaried class can avail exemption of Rs 50,000 under standard deduction every year. It is believed that the government can make changes in section 16 (ia) of income tax. It is expected that the limit of this standard deduction can be increased from Rs 50,000 to Rs 75,000.

Exemption will be available in 80C

Under Section 80C of the Income Tax Act, taxpayers can get tax exemption by investing an amount of Rs 1.5 lakh. Taxpayers have been demanding to increase this limit for a long time. If the government takes a decision on this matter in this budget, then taxpayers are going to get a big relief. This investment can be done in EPF, PPF, ELSS, NSC, NPS, Bank FD.

Invest for retirement

Employed people always invest in retirement plans. In such a situation, the government can increase the limit of tax exemption in this also. Experts are of the opinion that the government can increase this limit to one lakh rupees under section 80CCD (1B) of the Income Tax Act.

Health Insurance

At present, there is a rebate of Rs 25 thousand under the health insurance claim. It is expected that in this budget the government will increase it to 50 thousand rupees and for the elderly it can be increased from 50 thousand to 75 thousand rupees.

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In fact, the United Forum of Bank Unions (UFBU) has postponed the two-day nationwide bank strike to be held on January 30-31 following the consensus reached in the conciliation meeting held in Mumbai.

Why was the countrywide bank strike postponed

All India General Secretary of Bank Employees’ Association (AIBEA) CH Venkatachalam has informed that the bank unions will first discuss their demands on January 31. According to Venkatachalam, the Indian Banks’ Association (IBA) has agreed to hold a meeting with the unions on January 31.

In the conciliation meeting held on Friday, it was decided that three common issues of five-day banking, updation of pension and restoration of old pension scheme would be discussed on January 31. Other issues will be discussed separately with the concerned authorities and labor unions.

Who had decided to go on strike

Significantly, the UFBU, a group of several bank unions, had earlier decided to go on strike for their various demands. According to him, these demands are being put before the ministry for a long time and no decision has been taken on them.

Bank unions have many demands – know about some

Bank unions have several demands including 5-day banking working culture, upgradation of pension, residual issues, scrapping of National Pension System (NPS), immediate commencement of negotiations on charter of demands for wage revision and adequate recruitment in all cadres. The decision to call the strike was taken by the UFBU.

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Investing in government schemes is very easy and it is also very safe. One such scheme is being told here in which if you invest Rs 200 daily. After the completion of the term of the scheme, you will get 50 thousand rupees every month.

Which is this government scheme?

Many types of schemes are run by the government for the employed people, in which you get a good return after making a long term investment. There is a scheme of the government named National Pension System (NPS) in which you can invest. Money has to be deposited for long-term in the National Pension System. In this government scheme, if you put Rs.6000 every month for Rs.200 per day, then after 60 years you will get Rs.50,000 per month. Under this scheme, there are two types of accounts, NPS Tier 1 and NPS Tier 2. People who do not have PF deposit can open Tier 1 account by depositing Rs 500.

This is how you will get Rs 50,000

If your age is 24 years, then this scheme will give you maximum benefit. If you open an NPS account at the age of 24 and have to invest Rs 6000 in it every month. You will have to deposit money in it till the age of 60 years, that means you have to keep depositing money in it for about 36 years. After this this amount becomes Rs 2,55,2000.

If 10% return is assumed on your deposit, then its total corpus value becomes Rs 2,54,50,906. If you buy NPS annuity from 40% of your maturity income, then Rs 1,01,80,362 will be deposited in your account. If 10% return is assumed on this, then the total deposit amount in your account will be around 1,52,70,000. When you complete 36 years, then NPS will give you Rs 50,000 per month as pension.

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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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Pension scheme is a kind of financial planning that helps the planholder to maintain cash flow after retirement to meet the day-to-day needs. Government schemes like National Pension Scheme (NPS) as a retirement planning product have helped people a lot. Any worker and small businessman can take advantage of this scheme. 

In today’s time, people need to be encouraged to join such plans and invest in them before retirement for future financial security. By doing this the pension market in India can be strengthened. Due to the decrease in the number of pension fund subscribers, people are less interested in the retirement planning scheme. Talking about the current demographic shift, a large part of the total population of the country is still not under the pension scheme cover.

Pension scheme is a kind of financial planning that helps the planholder to maintain cash flow after retirement to meet the day-to-day needs. Government schemes like National Pension Scheme (NPS) as a retirement planning product have helped people a lot. Any worker and small businessman can take advantage of this scheme.

In today’s time, people need to be encouraged to join such plans and invest in them before retirement for future financial security. By doing this the pension market in India can be strengthened.accAt present, life insurance companies are offering many such pension and retirement plans which help people to save and invest smartly. By doing this, they can prepare to meet their post-retirement needs.

These schemes are designed in such a way that they can guarantee income after retirement. There are many types of retirement plans to meet the investment, tax exemption benefits and security targets. This plan is capable of maintaining a financially secure future. There are many categories of these investment plans based on the risk appetite. There is an option to modify the investment plan as per your choice and risk appetite.

People, their financial and economic status keep changing with time. In such a situation, long-term pension scheme can be easily changed. Another advantage is that along with pension, the benefit of insurance is also available. In case of any kind of accident with the retirement planholder, the family of the person taking the cover and his dependent relatives will also be financially protected.

Along with this, the retirement planholder gets the benefit of annuity. Annuity is a kind of contract between the insurance company and the retirement planholder. Due to which the planholder gets the benefit of regular income after retirement.

There are also some retirement and pension plans in which the subscriber is also given the opportunity to leave behind the legacy amount for his family members. There is the dual benefit of an investment plan with insurance which is quite flexible. This investment plan is such that it allows you to save a large amount without managing it.

Personally speaking, investing in retirement planning is very easy. One should subscribe to this plan in the early stages of the career and start investing for it. From the economic point of view, this will strengthen the pension sector. Fund management can be done while maintaining the financial stability of both the country and its citizens.

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It is a reliable pension source. It is best suited for customers who are unable to generate regular income from their retirement funds. However, many investors put money in it only for tax deduction of ₹50,000. This method is not correct.

If you are investing in it with the intention of earning long term gains, then it is important that your asset allocation is also strong so that you can earn maximum profits. To do the right asset allocation in NPS account, you have to pay attention to some things, which you will read further in this article. Let us first understand NPS.

Mode of Investment in NPS and Funds There are two modes of investment in NPS. The first active choice in which you allocate your investments yourself. In this, you can put 75 percent of your investment in equity. However, you can do this only for 50 years, after that every year the maximum limit for investing money in equity will decrease by 2.5%. The second option is Auto Choice, in which you do not take any decision regarding asset allocation.

Now let’s talk about different types of funds. The first one is the Aggressive Life Cycle Fund. In this, you can put 75 percent of your total investment in equity for 35 years. Second is Moderate Life Cycle Fund. In this, for 35 years, you can put 50 percent of your investment in equity. The third is the Conservative Life Cycle Fund. In this, for 35 years, you can put 25 percent of your investment in equity.

How to Include NPS in Asset Allocation

People up to the age of 40 should invest aggressively. Invest maximum money in equity. Include NPS in various investment options. People above the age of 40 should invest most of their money in debt (EPF+PPF). Invest maximum money in NPS in equity. On the other hand, if you do not have a huge PF fund and you have already invested most of the money in equity, then keep the investment approach safe in NPS.

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At the same time, before retirement, if funds are needed in an emergency, you can withdraw 60 percent of the amount from the deposit. However, it is necessary to put 40 percent of this amount in pension. Today we will know here that if someone wants to exit from NPS, how can he do it? Explaining further about its rules and process.

Let us tell you that NPS gives three different types of exit options. The first one gives the option of premature exit i.e. before the age of 60 years. The second gives the option to exit at the age of 60 years or more and the third allows to exit in case of untimely death of an account holder.

Rules for exit from NPS

After retirement till the age of 75 years, customers can opt for lump sum or annual withdrawal i.e. pension option to exit from NPS or can also postpone both. After 75 years, they have to exit from this scheme. However, its default option allows annual withdrawal of a minimum of 40 percent of the deposit amount and one-time withdrawal of the remaining 60 percent. At the same time, the customer also has the option of annual withdrawal of the entire amount.

Process of exit from NPS

Subscribers can now exit NPS through both offline and online mode. To process the exit online, the customer can place his request online with the help of OTP/e-sign. According to PFRDA, in the online process, customers will be able to log in to the Central Record Keeping Agency (CRA) system and submit an exit request.

Here they have to submit the details related to the exit. In this, customers can choose the option of lump sum or annual withdrawal. For this, the customer has to provide details of fund allocation, Annuity Service Provider (ASP), Annuity Scheme etc.

Along with this, KYC and other documents will have to be uploaded. After this POP also verifies the customer bank account number and uploaded documents with the help of ‘Instant Bank Account Verification’. To process this request, the customer also has to pay its charges. These charges are 0.125% of the total fund

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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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There are many schemes going on in the market regarding investment, some of them are Fixed Deposit, Public Provident Fund (PPF) and National Pension System (NPS). Talking about NPS, it is a voluntary retirement savings scheme, which encourages you to have planned savings. In this, you can keep your savings safe in the form of pension.

If you work in the private sector, you should consider investing as early as possible. Suppose you start investing Rs 4,000 every month in NPS at the age of 26 and continue investing till the age of 60, you will get more than Rs 35,000 as monthly pension. This is added by keeping the interest rate at 11 per cent.

About 2 crores back

If you start investing in this scheme from the age of 26, then your total investment will be Rs 16,32,000 when you reach the age of 60 years. At this point of time, your total corpus will be Rs.1,77,84,886. You will be surprised to know that you have invested only Rs.16,32,000 but you are getting back almost Rs.2 crores.

Your life will be happy after retirement

If you invest money in this scheme, then the lump sum return you will get will be Rs 1,06,70,932, while you will get around Rs 35,570 as monthly pension. So, you can see that not only will you be getting a pension of around Rs.35,000 per month starting at 61 years of your age, but you will also be getting a lump sum payment of more than Rs.1 crore. You will get so much money that your life will be happy after retirement.

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Everyone worries about old age expenses. If you also want that your old age is safe and you do not have any problem with money in old age, then you should start planning in advance. You should start saving money for retirement only on the day your job starts. Actually, the sooner you start saving, the more money you will get till retirement. There are many investment options available to you for accumulating retirement funds like EPF, NPS, stock market, mutual funds, real estate etc.

Government is running many schemes

To secure your retirement, the central government has made many schemes, where you can invest. If you are employed, then you must also think that when you retire, you will get a huge amount every month in the form of pension. But for this you have to invest from today itself, so that after 60 years your old age can be secure.

What is NPS Scheme 

National Pension System (NPS) is a government pension scheme consisting of both equity and debt instruments. NPS gets a guarantee from the government. You should invest in NPS scheme to get higher monthly pension after retirement. 

Income tax exemption

NPS pension scheme is a government scheme just like Public Provident Fund (PPF), Employees Provident Fund (EPF), Sukanya Samriddhi Yojana etc. In this, any investor can also increase his monthly pension amount by making the right use of maturity amount. Through NPS, you can save tax up to Rs 2 lakh annually. You can save tax up to a maximum of Rs 1.5 lakh under Section 80C of Income Tax. If you invest in NPS, you will get an additional tax exemption of up to Rs 50,000.

Will get monthly pension of Rs 2 lakh

If you deposit 5000 rupees every month for 40 years in NPC, you will get 1.91 crores. After this you will get 2 lakh monthly pension on investment of maturity amount. Under this, you will also get a monthly return of Rs 1.43 lakh and Rs 63,768 from the Systematic Withdrawal Plan (SWP). In this, a monthly pension of Rs 63,768 will continue to be received from the annuity till the investor is alive. 

Monthly pension of Rs 63,768 in 20 years

If you invest Rs 5000 every month from 20 years to retirement, then you will get a lump sum maturity amount of 1.91 crores to 1.27 crores. After this, you can get a monthly pension of Rs 63,768 every month at Rs 1.27 crore with 6% return.

There are two types of NPS

There are two types of NPS, NPS Tier 1, and NPS Tier 2. The minimum investment in Tier-1 is Rs 500 while in Tier-2 it is Rs 1000. However, there is no maximum limit for investment. There are three investment options available in NPS, in which the investor has to choose where his money will be invested. Equity, Corporate Debt and Government Bonds. With more exposure to equities, it also gives higher returns. Keep in mind that you should do any investment only after talking to your investment advisor. 

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The possibility of getting higher returns for investors in NPS has increased. According to pension fund regulator PFRDA, now after reaching the age of 51, subscribers will be able to put 75 per cent of their investment in equities linked to equity in Tier 1 account under Active Choice. Also, for this they will not be compelled to accept any condition like reducing their contribution.

PFRDA has said in a notification that it has changed the rules for investment in equity for Tier 1 and Tier 2 accounts. Information about the new rule has been given in a new circular. It is worth mentioning that under NPS, the subscribers get two options to invest in equities which are Auto Choice and Active Choice.

The PFRDA notification also said that with the change in the rules for investing in Tier 1 account, subscribers have been given the option to transfer 100% of the amount in the Tier 2 account to equity under Active Choice. It may be noted that at present, NPS subscribers have to choose any one registered pension fund. This is followed by four options under Active Choice – Equity, Corporate Bond, Government Security, and Alternate Assets.

What is the difference between Tier 1 and 2 account-

Two types of accounts are opened in NPS. In these, Tier 1 account is mandatory and pension is fixed on the basis of the amount deposited in it. There is an exemption to withdraw the amount only after retirement. Whereas Tier 2 account is like a savings account and it can be opened only if you have a Tier 1 account. You can withdraw money from it at any time.

Balance between risk and return

Financial advisors say that during the Corona period, there has been a lot of enthusiasm about investing in stocks and related products. Seeing the high returns, it has increased the attraction of young people as well as older people. He says the risk on investments should decrease with age. Whereas investing in stocks carries the highest risk. However, it also has high returns. This is the reason why PFRDA has tried to strike a balance between investment and risk for the shareholders.

Choose the option carefully-

Pension fund regulator PFRDA has advised that subscribers should assess their past performance and risk appetite before choosing an investment scheme or category in it. After that you should decide to invest in it. Financial advisors say that the performance should be based on at least five years rather than one year or so. Also one should compare with others in that category.

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Money is needed to earn money, but it is more important to know where to invest the money so that it can give you good profits. If you want to earn money by staying risk free then you have many investment options, one of them is New Pesnion System.

Earn 1 crore by saving Rs 150 daily

You can improve your old age by investing in NPS. Even if you save Rs 150 a day in NPS, you will get Rs 1 crore at the time of retirement. Investing in this is absolutely easy and low risk. Although NPS is a market linked investment.

You can earn huge profits by investing in NPS

NPS is a market linked retirement oriented investment option. Under this scheme, NPS money is invested in two places, Equity i.e. share market and Debt i.e. government bonds and corporate bonds. You can decide how much of NPS money will go into equity only during account opening. Usually up to 75% of the money can go into equity. This means that in this you are expected to get slightly higher returns than PPF or EPF.

We are going to tell you that if you have just started a job, you do not even have much money to invest, then it does not matter if you save Rs 150 per day and invest in NPS.

Suppose you are 25 years old at this time. If you invest Rs 4500 a month in NPS, that is, Rs 150 for a day. Will take retirement after 60 years. If this is assumed, then you will invest in it for 35 consecutive years. Now suppose that you got returns at the rate of at least 8%. So when you retire, your total pension wealth will be Rs 1 crore.

Start investing in NPS

Age 25 Years
Investment per Month Rs 4500
Investment Tenure 35 Years
Estimated Return 8%

Bookkeeping of NPS Investments

Total invested Rs 18.90 lakh
Total interest received Rs 83.67 lakh
Pension wealth Rs 1.02 crore
Total tax saving Rs 5.67 lakh

how much pension will you get

Now you cannot withdraw all this money at once, you can withdraw only 60 percent of it, the remaining 40 percent you have to put in an annuity plan, from which you get pension every month. Suppose you put 40% of your money in an annuity. So you will be able to withdraw a lump sum amount of Rs 61.54 lakh and assuming the interest is 8%, then every month pension will be Rs 27,353 thousand that is different.

pension account

Annuity 40 percent
Estimated interest rate 8 percent
Lump sum amount received Rs 61.54 lakh
Monthly pension Rs 27,353

We have started investing here at the age of 25. If you start investing early then your pension corpus is huge. The amount of pension depends on the amount you are investing monthly, at what age you have started investing and the returns you are getting. The example we have taken here is on estimated returns. It may be different in each case.

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Actually, people in NPS are often worried about which asset to invest in. This move by PFRDA is aimed at helping NPS subscribers decide which assets would be beneficial for them to invest in.

PFRDA issued guidelines 

Pension fund regulator Pension Fund Regulatory and Development Authority (PFRDA) has issued a guideline for this. Accordingly, the regulator has chosen six risk levels to make investors aware. Before investing in various NPS schemes, they will give all the information about the risks associated with them. Let us tell you that the new rules will be applicable from July 15, 2022. Also, these will be applicable to all existing schemes of categories E, C, G and A.

What is the new rule?

According to the circular issued by the FRDA, “Investment under different asset classes of pension fund schemes will involve varying levels of risk for the subscribers.” Therefore, it is necessary that the information about the risks involved in various schemes of NPS is made available to the customers. Six levels of risk have been prescribed. First is low risk, second is low to moderate risk, third is medium risk, fourth is medium-high risk, fifth is high risk and sixth is very high risk.

Not only this, the regulator has also said in the circular that tier-1 and tier-2 asset classes are equity (E), corporate debt (C), government securities (G), and pension funds managing Scheme A. Maintain and communicate the risk profile of

Keep these things in mind before investing 

Accordingly, the risk levels of Pension Fund E-Tier 1, E-Tier 2, C-Tier 1, C-Tier-2, G-Tier-1, G-Tier-2 and Scheme A depending on the characteristics of the scheme will be decided.
It will be mandatory to provide the risk level information in the ‘Portfolio Disclosure’ section of the Pension Fund’s website within 15 days before the end of each quarter.
– The risk level determined by the pension fund will be checked on a quarterly basis. If there is any change, it will be informed on the websites of the Pension Fund as well as the websites of the NPS Trust.
Pension funds will publish about the schemes on their website by 31st March every year.
It will be mandatory to report every time the risk level is changed during a year.

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Financial experts consider NPS as a great plan for long term investment. This is the reason why they invest a lot in it. Tax exemption can also be availed on investments made in this scheme under section 80CCD(1), section 80CCD(1B), and section 80CCD(2) of the Indian Income Tax Act, 1961.

2 accounts can be opened in NPS. Tier 1 and Tier 2. Tier 2 account is the savings account. It is voluntary. There is no restriction on withdrawing money from it. Tier 1 account is the retirement account. Certain conditions apply when withdrawing money from this account. Any Indian citizen between the age of 18 to 70 years can open an NPS account. If you also want to open NPS account then you do not need to go anywhere. You can do this work online sitting at home. Today, we are telling you how you can open an account with the help of Aadhaar.

How to open an account with Aadhar?

• First of all, one has to visit the e-NPS portal (https://enps.nsdl.com/eNPS/NationalPensionSystem.html).
• After this you have to click on “National Pension System” and then “Registration” option.
• Now select the account type in “New Registration”.
• After that click on the option either Indian Citizen, ARI or OCI.
• Select “Aadhaar Online/Offline KYC” option from “Register With”.
• Select “Tier I only” from Tier Types.
• Now you have to enter 12 digit Aadhaar or 16 digit Virtual ID and then click on Generate OTP.
• Now you have to enter the OTP you have received.
• After verification, your name, gender, date of birth, address, photo will be obtained from the Aadhar record.
• Now click on Demographic Changes in the menu option.
• Here again click on ‘Update Personal Details’.
• Now on the ‘Subscriber Modification’ page, select ‘Add/Update Nominee Details’ and click on ‘Confirm’.
• One has to choose either Tier 1 or Tier 2 account and then declare the nomination for the account.
• Nominee’s name, date of birth, relation, guardian’s name, address, pin code, city, state and country, and whether he is an adult or not, etc. have to be filled.
• If you want to add more than 1 nominee then click on ‘Add’.
• Now click on Save. If you do not want to make any changes in the form, then click on submit.
• An OTP will come on your registered mobile number. Fill it at the designated place.
• After doing this the form will open again. Click on ‘e-Sign & Download’ for e-sign here.
• After clicking, the option of Proceed will appear, click on it.
• Now you will reach the NSDL Electronic Signature Service page.
• Fill in the information given here. Thereafter, the portal will ask you for VID/Aadhaar number.
• Enter Aadhaar number and click on ‘Send OTP’. OTP will come on your mobile number.
• Enter it and click on ‘Verify OTP’.
• After this you have to download the registration details in PDF format to your device by clicking on Download e-Sign file.
• Your account has been opened.

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Pensioners of this scheme will get benefits. Let us know about this special scheme of the government. Under this program, preparations are being made to bring Minimum Assured Return Scheme, which will benefit crores of investors of the country. It can be launched in the National Pension System (NPS) only by the end of this month.

When can the scheme start?

PFRDA chairperson Supratim Bandyopadhyay said, “Right now we are working on the minimum guarantee return scheme. He said that PFRDA understands the impact of inflation and depreciation of rupee on its investors and gives returns accordingly. At present, work is underway on a minimum return scheme in NPS, which will enable investors to get a huge amount. This plan can be launched by the end of this month. Actually, earlier it was planned to launch it by 30 September.

How much return have you got so far?

Supratim Bandopadhyay has informed that in the last 13 years, the National Pension Scheme has given investors returns at the rate of more than 10.27% annually. In fact, to provide relief from rising inflation, efforts are being made to ensure that investors get strong returns under NPS. With the advent of the Guarantee Return Scheme, crores of people of the country will benefit and the number of people applying for the National Pension will also increase rapidly.

Subscribers will become 20 lakhs

Now let’s talk about returns, then the chairperson of PFRDA said that the size of pension assets is Rs 35 lakh crore, out of which 22 percent i.e. total Rs 7.72 lakh crore is with NPS and 40 percent is with EPFO ​​(Employees Provident Fund Organization). The maximum age of joining has now been increased to 70 years, due to which the number of subscribers has increased a lot. Now the total number of subscribers has increased from 3.41 lakhs to 9.76 lakhs.

Know what is NPS?

The Central Government had compulsorily implemented NPS for its employees on 1 January 2004. After this all the states adopted NPS for their employees. After the year 2009, this scheme was also opened to those working in the private sector. After retirement, employees can withdraw a part of NPS, while the rest can take annuity for regular income. Anyone in the age group of 18 to 70 years can take the National Pension Scheme.

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If you are also employed then you will also be interested to know about the ways of saving tax. The salary structure of many people is such, in which there is no provision of tax free allowance. Even if your income tax liability is low, you can reduce it further by adopting some alternative ways of saving tax. Do you know that your employer can help you save tax by contributing to NPS on their behalf, if they so desire? Yes, if you do not know about this, then we are giving you information about this in detail.

Employee’s own contribution to his NPS account is eligible for deduction under section 80CCD(1) and not under section 80C. The limit of Rs 1.50 lakh is prescribed under section 80CCE which covers all items eligible for deduction under section 80C, 80CCC and 80CCD(1).

Know what are the rules

Deduction under section 80CCD (2) is made available to the employee in relation to the employer’s contribution to the employee’s NPS account. This deduction is given up to Rs 1.50 lakh, which is under section 80C, 80CCC and 80CCD(1). At the same time, deduction of up to 10 percent of the basic salary and dearness allowance of the employee is available under section 80CCD (2). Higher deduction of up to 14 per cent of contribution is available as a percentage of basic pay for Central and State Government employees.

Although there is no limit for deduction in respect of employer’s contribution to the NPS account of an employee under section 80CCD(2), section 17(2) of the Income-tax Act provides that the total amount of the employer’s contribution to the employee’s provident fund is In case of contribution, National Pension System and superannuation exceeds 7.50 lakh in a year, the excess in the hands of the employee will be taxed as perquisite.

In addition to the deduction up to Rs 1.50 lakh in NPS account, all taxpayers can avail additional deduction of up to Rs 50,000 under section 80CCD (1B). In total, you can contribute up to Rs 2 lakh to your NPS account and get the benefit of tax deduction.

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