Now, there are more than one reason to invest in National Pension Scheme, after the Budget 2015, presented by Arun Jaitley. As per new budget, an individual in the 30% tax bracket can save up to Rs 15,450 in tax every year.
The NPS is controlled by Retirement living Finance Regulating Growth Power (PFRDA). Initial minimum of Rs.500/ contribution can be made for Tier 1 and for Tier-II it is a minimum of Rs.1000/-.
On retirement, you can withdraw up to 60% of the corpus as lump sum amount. The balance will be saved in form of annuities, which comes back to you as a monthly pension.
Procedure to open an Account
Any Indian or non-resident Indian citizen of the age between 18 to 55 years can opt for NPS scheme. In order to do so, one should visit the nearest POP division.
1. Download the form and fill the application
2. Attach 1st cheque towards NPS Contribution in favor of fund manager you choose
3. Select (Any 1) of the Pension Fund Manager (PFM)
4. Select the investment options
5. Attach the required KYC documents
There are pre-requisites to be fulfilled while signing up for NPS consideration, one need to publish the recommended type and duly fill in the Know Your Client (KYC) forms.
Documents needed are Identity Proof, Deal with Evidence, Date of Joining Proof and 2 latest passport size photographs.
The recommended plan type and resource allowance are to be submitted after getting approval for the same. 50% of value allowance is enjoyed under NPS scheme.
On opening an NPS account, an exclusive recognition number is released to the account holder which is known as ‘Long lasting Retirement living Consideration Variety (PRAN)'.
This number is a 16-digit number which is fixed permanently, irrespective of any change in job, place of account or even positional change in pension finance administrator.
Specific Pension living Finance Supervisors (PFMs) had been hired who will be responsible for investing resources and generating profits from them.
List of Pension Fund Managers
- Life Insurance ICICI Prudential Company Limited
- Asset Management Kotak Mahindra Company Limited
- Asset Management IDFC Asset Management Company Limited
- SBI Pension Fund Limited
- Asset Management Reliance Capital Company Limited
- UTI Retirement Solution Limited
However, various Point of the Presence had been constituted, which act as customer interface for investor.