NPS Calculation: The National Pension Scheme was started in January 2004 only for government employees. But, in the year 2009 it was opened for all categories of people. Now any individual can invest in it.
NPS Calculation: If you want regular income even after retirement, then retirement planning is necessary. That’s why there are many types of pension plan options. National Pension Scheme- NPS is one such retirement tool. After retirement in the National Pension Scheme, people get regular income for monthly expenses. You can also invest in this plan for regular income like salary. It is a central government scheme, so it is safe as well and the average returns are also much higher than other schemes. If you do the calculation (NPS Calculation), then you will have a corpus of crores in retirement.
NPS Calculation: Start investing from the age of 21
- If you start investing at the age of 21, you will have to invest Rs 4,500 monthly.
- Till the age of 60, one has to invest continuously for 39 years.
- There will be an annual investment of Rs 54000 and the total investment in 39 years will be Rs 21.06 lakh.
- If the estimated return (NPS return) is 10% then the amount on maturity will be Rs 2.59 crore.
- Monthly pension of Rs 51,848 will also be available on retirement.
NPS Calculation: Rs 1.56 crore will be available on retirement
40 percent annuity is available in NPS. The annual annuity rate is 6%. In this case, after retirement, a lump sum amount of Rs 1.56 crore is received. The remaining amount of Rs 1.04 crore goes towards annuity. With this annuity amount, you will get a monthly pension of Rs 51,848. The higher the amount of annuity, the more pension will be received.
How much does NPS account open?
- There are two types of accounts under NPS. First Tier-1 and second Tier-2.
- Tier-1 is a retirement account. Tier-2 is voluntary account. Any salaried person can invest in it.
- Tier-2 account opens only after Tier-1 account is opened.
- To keep NPS Tier-1 active, the contribution was first reduced from Rs 6,000 to Rs 1,000.
- Can run the investment till the age of 65.
- It is necessary to buy 40 percent annuity on NPS investment.
- 60 percent of the amount will be received lump sum after 60 years.
- If the minimum investment is not made, then the NPS account is frozen and made inactive.
How to open NPS account? (How to open NPS Account)
- Visit Enps.nsdl.com/eNPS or Nps.karvy.com to open NPS account.
- Click on New Registration and fill the details. Mobile number will be verified with OTP. Fill the bank account details.
- Select the portfolio and fund. set name.
- The bank account whose details are filled will have to give a canceled check of that account. Photograph and signature have to be uploaded.
- After making the payment, Permanent Retirement Account (PRN) number will be generated. You will also get the receipt of payment.
- After making the investment, go to the ‘e-sign/print registration form’ page. Here you can register with PAN and NetBanking. With this KYC (Know your customer) will be done.
Benefit of tax exemption (NPS Income tax benefit)
Tax exemption is also available in NPS. Tax exemption is available under sections 80CCD (1), 80 CCD (1b) and 80 CCD (2) of the Income Tax Act. Apart from section 80C i.e. Rs 1.50 lakh on NPS, you can take a further rebate of Rs 50,000. By investing in NPS, you can take advantage of income tax exemption of Rs 2 lakh.
Can transfer account (How to transfer NPS Account)
NPS Calculation: You can also transfer NPS account. You can also change its location according to your need. Subscriber can access NPS account online through mobile application and system. There is no need to go anywhere to take advantage of the scheme. All the work will be done sitting at home.