Today we are going to illustrate you about how this government scheme (National Pension Scheme) gives you benefits where you can spend Rs 1000 per month and after retirement you can get a pension of 20 thousand rupees per month, which assures you a secure future.
We will tell you how National Pension Scheme works and what are the benefits of this Scheme that you should know before investing in it.
In Today’s time there is a lot of government or non- government pension schemes in the market, we get many options but it is important to look for good financial planning and a deep research.
National pension scheme is a government scheme where investing 1000 rupees a month, you can get a pension of 20 thousand rupees per month after your retirement but you should know every aspect where you are planning to invest. So, it is important to know about this pension scheme and its benefits before making an investment.
What is National Pension Scheme (NPS)?
How to get Rs 20,000 per month as a pension?
National Pension Scheme is a government scheme, which is specially constructed in such a way that people can take benefits of this scheme after their retirement. This scheme is for the elderly people which were started in January 2004 for the first time by the government for government employees. Later in 2009, it was opened to all categories i.e government or non – government employees.
In this scheme, one can invest 40 percent of the amount in the annuity and from the amount of annuity, one gets a pension later.
This scheme includes people in the age group of 18 to 70 years who can take advantage or benefits of this scheme. In start one can make investment of only Rs 1000 in the NPS.
If anyone starts investing in this scheme at the age of 20, till retirement he/she will have a total corpus of Rs 5.4 lakhs if invested 1000 rupees a month. It depends what amount a person is investing. He/she will get a return of 10 per cent in this.
To make it more easier to understand let’s take an example : if 40 percent of the corpus is converted into a year, this price will be 42.28 lakh. This way, let us assume a 10 percent annual rate and then the person will get a pension of Rs 21,140 every month.
Also, along with this, a person gets lump sum amount of about Rs 63.41 lakh.
Benefits
- If you are planning to invest in NPS here is what you need to know before investing.
- On final withdrawal 60 percent of the amount will be tax- free.
- Also, the amount invested when purchasing of an annuity is also fully exempt from tax.
- Anyone who is NPS subscriber can claim a tax deduction of up to 10 percent of the gross income under section 80 CCD (1) of the Income Tax Act.
- NPS subscriber can claim additional deductions up to Rs 50,000 under this section (80CCE).
