Overview

Introduced by the government of India, NPS is a highly beneficial and visionary contributory pension scheme which allows individuals to develop a fund for retirement, when one requires financial security, by investing certain specified amounts regularly in the present.

By offering tax benefits and many other favorable features, NPS promises financial security for every citizen by encouraging the habit of making regular savings for one’s old age, from a very early stage of life. It has been designed to enable the subscribers to take judicious decisions regarding their future through systematic savings during their employment.

PROCEDURE & SUBSCRIPTION

The subscriber must fill in an application form with relevant details, as required

The following KYC Documents should to be submitted along with the application form:

Minimum NPS Contribution amount to be paid to any of the Alankit authorized representatives

PRAN (Permanent Retirement Account Number) will be generated and shared with the subscriber within 7 working Days

The PRAN Card will be delivered within 20 working days at the Indian address given by the subscriber

How does NPS Help?
  • 1. It is a voluntary scheme and lets you choose the amount you want to set aside and save every year.
  • 2. You can avial tax benefits under Section 80C the Income Tax Act.
  • 3. There is no entry and exit loads under NPS.
  • 4. With NPS, you can select your own fund option and pension fund to gain high returns.
  • 5. It is portable, so you can operate your account from anywhere in the country, even if you change your city, job or your pension fund manager.
  • 6. NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust.
  • 7. Professional record-keeping and fund management.

Salient Features & Eligibility

The scheme is open to all citizens of India and NRIs from 18 to 65 years of age

NPS is designed with restricted withdrawal options. There is a single account option for NRIs, Tier-I, which is a regular pension account

There is no upper limit of investment

It provides safe and reasonable market-based returns over the long term

All charges levied under NPS are defined and regulated by PFRDA

Default penalty of Rs.100/- if min. contribution is not deposited

Dormant account shall be closed when account value falls to ZERO

WHY ALANKIT?

A trusted leader in e-governance services sector, Alankit provides end to end solution when it comes to NPS-related services, starting from the primary subscriber registration and undertaking the KYC verification to transferring the information methodically further to the elected intermediaries in a straightforward manner. One gets the following benefits with Alankit:

Professional assistance throughout
Timely redressal of customer grievances
Expert guidance at every step
Easy & affordable solutions

NPS -FAQs

To contribute in Tier I and Tier II account, a subscriber is required to deposit the contribution amount along with duly filled NCIS (NPS Contribution Instruction Slip) to Alankit.

A subscriber is required to make contributions subject to the following conditions:

- Minimum amount at the time of Account opening - Rs 500

- Minimum amount per contribution - Rs 500

- Minimum contribution per year - Rs 6,000

Over and above the mandated limit of a minimum of one contribution, a subscriber may decide on the frequency of the contributions across the year as per his / her convenience. No maximum limit has been mandated. For Tier II, minimum contribution requirements: Minimum contribution at the time of account opening - Rs.1,000 Minimum amount per contribution - Rs.250 Maintain minimum balance of Rs.2,000 at the end of each financial year.

At least one contribution in a financial year is a must in both Tier I and Tier II account

The following applicants cannot join:

- Undischarged insolvent: Individuals who are not granted an ‘order of discharge’ by a court.

- Individuals of unsound mind: An individual is said to be of unsound mind for the purposes of making a contract if, at the time when he makes it, he is incapable of understanding it and of forming a rational judgment regarding its effect upon his/ her self-interest.

- Pre-existing account holders under NPS.

Individual subscribers can avail specific tax benefits under various sections of Income Tax Act 1961.

- Tax deduction up to 10% of gross income under Sec 80 CCD (1) within overall limit of Rs. 1.5 lakh under Sec 80 CCE.

- Additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) under subsection 80CCD (1B), over and above the deduction of Rs. 1.5 lakh under section 80C

Corporate subscribers get additional Tax Benefit under Corporate Sector, u/s 80CCD (2) of Income Tax Act.

CRA, which is Central Record Keeping Agency, is the core infrastructure for the National Pension System. Managed by NSDL, it executes main functions such as record keeping, administration and customer service functions for all subscribers of the NPS. Issuing of unique Permanent Retirement Account Number (PRAN) to each subscriber, maintaining a database of all PRANs issued and recording transactions relating to each subscribers PRAN.

According to PFRDA Regulations, a subscriber can exit from NPS in two conditions:

- A subscriber can exit from NPS only after completion of 10 years. In case of pre-mature exit, at least 80% of the pension wealth of the subscriber should be utilized for purchase of an annuity that will provide a monthly pension. The rest 20% of funds can be withdrawn as lump sum.

- In the event of death of the subscriber, the beneficiary submits a withdrawal request to the associated POPSP and 100% of the accumulated pension corpus will be paid to the beneficiary. If the beneficiary wants to continue with the NPS, he or she can subscribe to NPS individually after following due KYC procedure.

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