NPS ACCOUNT TIER 1 & TIER 2 ( INVESTMENT & YOU )

NPS Tier 1 is a retirement account. It is the primary NPS account and you can only open a Tier 2 account after opening a Tier 1 account. There is no income tax benefit on contributions to Tier 2 NPS account.

The account can be opened under the NPS (Central Govt), NPS (State Govt), NPS (Corporate) and NPS (All Citizens Models). Different rules apply to each, general rules stated below apply to all types of NPS Tier 1 accounts.

You need to deposit a minimum annually Rs. 1000 to keep the account active. this account matures at the age of 60 whereas you can extend the maturity till 70 yrs.

Tax benefit on this account :

Contribution up to 1.5 lacs is allowed under section 80C and an additional 50000 is allowed a deduction under 80CCD ( 1B).

On withdrawal, 60 % can be withdrawn tax-free for the Next 40 % you must purchase an annuity which is a tax-free investment. whereas income on annuity is taxable every year.

Eligibility for opening an account :

1.You have to be a citizen of India. NRIs can also open it as long as they are Indian citizens.

2.You have to be between 18 and 65 years of age. (Special rules apply if you open an NPS Tier 1 account from the age of 60 – 65.)

Minimum Investment: Rs 1,000 per annum per account

Maximum Investment: No upper limit

Lock-in: Till your age of 60 years

Returns: It depends on the performance of asset allocation and pension funds chosen by you.

Senior citizen Tax saving scheme

How to open an NPS Tier 1 account

You need to have the followings and your account can be opened:-

Pan Card, Aadhar card, Bank Account

want to open an NPS account just what's app:- +91-7290087927 our person will guide you.

Cotribution to Tier 1 Account

1. Online contribution can be made to the NPS

NPS Tier 1 withdrawal rules

You can make up to 3 partial withdrawals from NPS Tier 1 during the lifetime. Such withdrawals can be made 3 years after opening the account.

• They can be made on specific grounds such as medical treatment, higher education of children, the marriage of children, home purchase etc.

• These withdrawals cannot in total exceed 25% of your contributions and are tax-free.

On maturity of the account -

60 % tax-free at lum sum and rest 40% compulsorily to be used to buy an annuity which is taxable every year.

Hope above is worth of reading for your purposes.

Regards

Compiled by

Ca Sunil Sakral

casunilsakral@gmail.com

9999512184

The above views are of personal research-based viewed and subject to change as per the directions of the regulator. Pls, invest after complete understanding.