What is NPS?
National Pension Scheme is a government-backed retirement savings scheme offering market-linked returns and tax benefits.
NPS Benefits
- Tax Benefit: Extra ₹50,000 under 80CCD(1B)
- Low Cost: Lowest fund management charges
- Flexible: Choose your asset allocation
- Portable: One account throughout life
NPS Contribution Structure
| Account | Contribution | Purpose | |---------|--------------|---------| | Tier 1 | Mandatory | Retirement | | Tier 2 | Optional | Savings |
Tax Benefits
Section 80CCD(1)
- Up to ₹1.5 lakh (part of 80C limit)
Section 80CCD(1B)
- Additional ₹50,000 (exclusive)
Section 80CCD(2)
- Employer contribution up to 10% of salary
NPS Returns
| Asset Class | Expected Return | |-------------|-----------------| | Equity (E) | 12-14% | | Corporate Bonds (C) | 8-10% | | Government Securities (G) | 7-8% |
Use our NPS Calculator to plan your retirement.
Withdrawal Rules
- 60% Lump Sum: Tax-free at retirement
- 40% Annuity: Monthly pension for life
Related Calculators
Tags
#NPS#Pension#Retirement#Investment
