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Various Benefits of Investing in NPS

NPS
Jul 05, 2021 Alankit

NPS or National Pension Scheme is going to be your friend forever and is going to make your retired life smooth and comfortable. With NPS in place, it will be easier for you to plan your retirement the way you have always dreamed of and will also allow you to keep your living standards intact. The NPS offers many options for senior citizens of the country to keep you safe financially.

This takes a circle back to understanding what exactly NPS means and how is it going to be a beneficial investment for your long-term financial freedom post-retirement. National Pension Scheme or commonly known as NPS is a Government-owned social security investment system customized especially for employees working in public, private, or unorganized sectors except those in armed forces. Under this scheme, as an investor, you can invest a certain portion of your income through NPS online registration, at a regular interval of time. Once you come close to the age of retirement, you can withdraw a certain percentage of the financial corpus that you have earned. For the rest of the amount, you will be able to enjoy it as your regular pension.

All you have to do is go online and fill the PRAN application form. Submit all the documents require for the PRAN application online and make the payment (which starts from Rs. 500) and you are all set to enjoy your NPS benefits when you retire. PRAN stands for Permanent Retirement Account Number.

Nevertheless, NPS offers you as an investor various financial benefits if you go for the NPS scheme online. It is beneficial for both the private sector as well as those of you who are planning to go for NPS online registration for government employees. Following are the few benefits you receive when you apply for NPS online scheme.

Flexibility: one of the best features of the NPS Scheme is that you are offered tractability to design your fund portfolio according to your convenience as an investor. The USP of this scheme that reassures you as an investor is that it is a Government-backed Investment Scheme.

Lower Risk Investment: As per the risk part, NPS is a comparatively low-risk investment and also gives you the privilege of rearranging your fund at your convenience at any given point in time.

Assured Returns: even though a portion of the NPS deals in equity, which usually doesn’t offer any return benefits, NPS however has an edge over the others. It offers overall guaranteed returns from the NPS scheme which are higher unlike the other options available in the market such as FDs and PPFs.

Tax Saving Option: under Section 80C of the Income Tax Act, NPS provides tax benefits for the investor in the NPS Scheme online. The amount that you have is inclined to give you a tax deduction of around Rs. 50,000 covered under Section 80CCD. It doesn’t end here; you can further claim a tax deduction of up to Rs.1, 50,000 under Section 80C. However, to enjoy these benefits, you need to invest in the Tier I category of the NSP scheme.

If you envision a stress-free, happy life after retirement, you should consider investing in NPS that helps you build a retirement corpus and allows tax benefits with Alankit. NPS applications can be made online through the official website of Alankit. All you need is to follow the detailed form step-wise that simplifies your steps mentioned there and enjoy a hassle-free happy life.

In short, to have a bright n comfortable retirement, it is essential to arrange your prime. NPS projects as a good option chose for maintaining the lifestyle you have been living in with great financial return and tax deduction features while providing you the financial security that is required during your old age.

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