- National Pension System: Pension Fund Regulatory and Development Authority allows video-based KYC
- Subscribers can easily open an account through one time password
National Pension System
new Delhi. The National Pension System is a great option for long-term investment. It also provides pension facility with lump sum amount. A little investment can be made in this to earn more profits. Recently the Pension Fund Regulatory and Development Authority (PFRDA) has made some changes in the NPS rules. With this, it has become even easier to open new accounts. Video-based Customer Identification Process (VCIP) has been permitted by PFRDA. Apart from this, now subscribers can also open APS accounts through One Time Password (OTP).
Benefits of NPS
Earlier, only government employees could invest in this scheme, but in the year 2009 it was opened to all categories of people. In this, a person gets a lump sum retirement fund and later an annuity benefit at the age of 60 when invested while doing a job. Along with this, there is a tax rebate on the amount deposited in the NPS. You can open this account in your name or in the name of your wife.
Also, under the new rule of PFRDA, old subscribers can also rejoin the scheme. For this, they have to use Customer Permanent Retirement Account Number (PRAN). With this, they can close their old pension account and open a new account. In this, under Section 80C of the Income Tax Act, you get an additional benefit tax of Rs 50,000, besides an exemption on Rs 1.5 lakh. In this way, you get a tax exemption of Rs 2 lakh.
Learn how to become a millionaire
If you are 30 years of age and invest in NPS account for next 30 years. If you deposit 5,000 rupees every month, then at the age of 60, with a 10% return on that investment, you will have 1.12 crores in your account. According to the rule, as soon as you are 60 years old, you will get 45 lakh rupees as a lump sum. Whereas apart from this, you will get a pension of 45 thousand rupees every month.
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