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National Pension Scheme

retirement planningA government sponsored pension scheme perfect for retirement planning
tax benefitsBest of both worlds with tax benefits and fixed monthly income post retirement
invest easilyInvest in NPS investments easily with recommendations from good fund managers
Interested in investing in National Pension Scheme?
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What is NPS or National Pension Scheme?

National Pension Scheme is an all-round retirement planning scheme that ensures a fixed income after retirement while also retaining various tax benefits thus killing two birds with one stone. The pool of contributions from subscribers of the National Pension Scheme is invested into various market linked instruments like equities and debts. The amount of your pension is decided on the basis of the performance of your NPS funds. When you enter retirement stage, you can purchase an annuity [monthly pension] using your accumulated corpus. National Pension Scheme is regulated by the Pension Fund Regulatory and Development Authority [PFRDA].

How to invest in National Pension Scheme via Moneyfront

Moneyfront has partnered with Religare Broking Limited to offer the National Pension Scheme (NPS). With a smooth and fast web and mobile platform, investing in NPS now becomes a hassle free process using Moneyfront as your online investment advisor. You can constantly track and review the performance of your NPS contributions.

Moneyfront tracks and recommends funds based on the best fund managers, thus helping increase your national pension scheme returns.

Look forward to a comfortable retirement. Invest in NPS now!

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Prefer to enjoy returns on your investment earlier? Then explore Direct Plans of Mutual Funds.

Why Invest In National Pension Scheme?

Secured income

It is a great investment opportunity to secure post retirement income.

Good returns

Since it is linked to the market, returns are reasonably flattering.

Tax benefits

The national pension scheme tax benefits outweigh the high returns from some of the other investment options. One can claim a tax deduction of up to 10% of gross income with an overall ceiling of INR 1.5 lakhs. An additional deduction for investment up to INR 50,000 is also available for NPS subscribers. Tax deduction up to 10% of salary is allowed in case of contribution by the employer.[MOU1]

Tax Benefits for NPS

NPS AccountTax BenefitTax Treatment
Tier ISalaried IndividualInvestment up to 10% of Salary (Basic + Dearness Allowance) is deductible from taxable income u/s 80CCD (1) of Income Tax Act, 1961 subject to 1.5 lakhs limit of section 80C Additionally, investment up to Rs.50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961

Self Employed ProfessionalsInvestment up to 10% of Salary (Basic + Dearness Allowance) is deductible from taxable income u/s 80CCD (1) of Income Tax Act, 1961 subject to 1.5 lakhs limit of section 80C Additionally, investment up to Rs.50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961
Up to 40% of Corpus withdrawn in lump sum is exempt from tax Balance amount invested in Annuity is also fully exempt from tax.
Pension received out of investment in Annuity is treated as income and will be taxed appropriately
Tier IIThere is no tax benefit on investment towards Tier II NPS AccountIndexation benefit can be