The National Pension Scheme is a market-linked investment. Under this scheme, fund managers invest your money in equity and debt, which gives strong returns in the long run.
New Delhi. Every person aspires to get full benefit of investing money in any scheme. On this criterion, the National Pension Scheme fully meets. This is a scheme in which there is a complete guarantee of safe return of money on investment. By depositing Rs 50 per day in this scheme, you can get Rs 34 lakh at the time of retirement. This is because NPS is a market-linked oriented investment.
This work will have to be done to take advantage of the scheme
To take maximum advantage of this scheme, it is better to get the scheme done in your name at an early age. Let us assume that you start the NPS scheme at the age of 25. You invest Rs 50 everyday every day. Accordingly, your monthly investment in NPS is Rs 1500. If you invest continuously for 35 years, your total investment will be Rs 6.30 lakh. But the total interest you will get on the investment will be Rs 27.9 lakh. Also, the total money on retirement will be Rs 34.19 lakh and the total tax saving will be Rs 1.89 lakh.
20.51 lakh will be able to withdraw at the age of 60
Apart from this, at the time of retirement or when you turn 60, you will be able to withdraw up to 60% of your total corpus from NPS. This means that you can withdraw up to Rs 20.51 lakh at the time of retirement. The rest of the money is invested in an annuity investment plan which provides you a monthly pension.
900 pension every month
If the interest rate offered by the government on your investment is around 8%, then you will get a monthly pension of about Rs 9000 per month.
You can also take advantage of tax rebate
Tax exemption is also available on the National Pension Scheme under Section 80CCD(1), 80CCD(1B) and 80CCD(2) of Income Tax. One can take a deduction of Rs 50,000 on NPS over and above section 80C i.e. Rs 1.50 lakh. In this case, a total tax exemption of Rs 2 lakh can be taken in a year.
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