Investing in the National Pension System (NPS) can be beneficial to make the future secure after retirement. It gives better returns, as well as tax exemption.
Is investing in NPS beneficial for retirement?
National Pension System (NPS) is a better scheme to avoid money problems after retirement and to garner a monthly income. This is more beneficial for such people who do private jobs. With this scheme, you can make your future secure. This will also remove the worry of being dependent on others. The government has made the process of investing in NPS more easy. Now you can open an account even sitting at home. One has to apply for opening NPS account online.
how to open online account
1. Click on the link Enps.nsdl.com/eNPS or Nps.karvy.com to open an eNPS account.
2. Now click on New Registration and fill your details and mobile number. Your mobile number will be verified with OTP. After that fill your bank account details.
3.Choose your portfolio and fund. If you want to make someone a nominee, then fill the name of the nominee also.
4. Upload the scanned copy of the canceled check of the account for which you have filled the details for the investment. Upload your passport size photograph and signature along with it.
5. Select the amount you want to invest and deposit the money. After making the payment, your Permanent Retirement Account Number will be generated and you will also get the receipt of payment.
6. After making the investment, go to the ‘e-sign/print registration form’ page. Here you can register with PAN and Netbanking. With this your KYC (Know your customer) will be done.
7. The details of which bank you are getting the facility to open NPS account can be checked on the official website of NSDL.
Get the benefit of tax exemption on NPS
Tax exemption is available on NPS under sections 80 CCD (1), 80 CCD (1B) and 80 CCD (2) of Income Tax. If you can get a discount of up to Rs 1.50 lakh in this. In which an additional discount of Rs 50,000 is available. That is, by investing in NPS, you can take advantage of the exemption of Rs 2 lakh.
Also read: From PPF to NSC, know which government scheme is the best and where you will get strong return on investment
Pensioners get relief! Now you will not have to go to the bank for life certificate, get it easily like this