Post Office NPS Account: NPS is a voluntary retirement savings scheme that allows subscribers to subscribe for savings, thereby securing a future in the form of pension.
Post Office NPS Account: If you want to invest in the National Pension System, then you can open your account in the post office also. It is as easy as that. NPS account is a voluntary retirement savings scheme that allows subscribers to subscribe for savings, thereby securing a future in the form of pension.
Who can open account
Under the Post Office NPS Scheme, if you are an Indian citizen of 18 to 70 years, you can open your account. In this you have to fulfill the KYC rules. There are two types of accounts in this scheme- Tier 1 and Tier 2.
Tier 1 Account:
In this account, the applicant is allowed to contribute the amount of his savings subject to certain conditions. In this, you cannot withdraw money from the account before. Its account holder can claim for tax exemption against the contribution made. This is a retirement account. While opening this account, a minimum contribution of Rs 500 has to be made. Keep in mind that excluding tax and other charges, at least 1000 rupees will have to be contributed in the NPS account in a year.
Tier 2 Account:
This is a voluntary savings facility. In this, the account holder can withdraw his amount from the account whenever he wants. This is not a retirement account. In this account holders cannot claim tax exemption. In this also, at the time of account opening, at least 1000 rupees will have to be contributed. There is no minimum contribution and maximum contribution limit in the financial year.
Benefit of tax exemption
According to the official website of the post office, under this scheme (Post Office NPS Scheme), you can take advantage of tax exemption under Section 80 CCD(1), Sec 80 CCE and 80CCD 1(B) of Income Tax. . Customers can invest in it according to themselves. If the customer does not choose any option, the money gets invested by default in Oderate Life Cycle Fund.