Authors: TheIndianSubcontinent News AgencyThere is an additional tax benefit up to Rs 50,000 for investment in National Pension System (NPS)National Pension System (NPS) refers to a contributory pension system whereby contributions from subscribers along with matching contributions from respective governments as an employer, are collected and accumulated in an individual pension account.
As a subscriber under NPS you are provided with an individual pension account identified by Permanent Retirement Account Number (PRAN) which is unique and portable across locations and employments.
The Pension Fund Regulatory and Development Authority (PFRDA) is the nodal authority to manage NPS operations.India Post also offers the facility of opening NPS accounts, among the many savings schemes that it offers.If you're opening an NPS account with India Post, this is what you must know:Services offered by India post for NPS subscribersIndia Post allows subscribers to open new NPS (all citizens model) account, facilitates subsequent contributions, all types of service requests and exit / claim withdrawal requests, it stated on its website, indiapost.gov.in.Types of accounts under NPSThere are two types of accounts that are opened under NPS: Tier I and Tier II.
Tier I is a pension account and is mandatory.
Tier II is a savings account and is optional.Income Tax benefits offered by NPSThere is an additional tax benefit up to Rs 50,000 for investment in NPS (All Citizen Model), said India Post.Finance cap on NPS accountsMinimum Initial Contribution with RegistrationRs.
500 (excluding taxes).Minimum Subsequent ContributionRs.
500 (excluding taxes).Maximum ContributionsNo limit.Minimum Contributions in a Financial Year Rs.1,000 in Tier I.Minimum transactions in a Financial YearOne.Transactional Charges for NPS accountsRegistration ChargesRs.
200(excluding taxes).0.25 % of the Contribution amount subject to minimum of Rs.20 (excluding taxes) and maximum ofRs.25,000 (excluding taxes).All Service ChargesRs.20 (excluding taxes).Payment mode>Cash, Cheque, DD subject to realization.Pension wealth under NPS accumulates over a period of time until retirement and grows with a compounding effect.