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NPS Scheme: How to Invest in NPS Plan? What are the Benefits? (See Details Here)

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New Delhi: There are many investment options, including non-government and government schemes.

Investing today requires careful financial planning and deep research to ensure maximum return. You are also searching for a way to maximize return and security?

This government scheme allows you to invest 1000 rupees per monthly and receive a pension of 20 000 rupees per year after retiring. Keep reading to learn all you need to know about investing.

What’s the National Pension Scheme (NPS?

The National Pension Scheme, a government scheme, is specifically designed to provide elderly benefits.

The scheme was created for government workers in January 2004. It was later opened to all types of people in 2009.

You must invest 40% of the amount into the annuity. You will receive a pension after you have paid the annuity amount.

How can I get Rs 20,000 per Month as a Pension?

The NPS can be started with a minimum investment of Rs 1000. This scheme is available to anyone between the ages of 18 and 70.

You can build a total wealth of Rs 5.4 Lakhs by investing 1000 rupees per month starting at 20 and ending at retirement.

This will result in a 10% return, which will make this investment reach 1.05 crores. This prize is Rs 42.28 lakh if 40 percent of the corpus can be converted into one year.

Assuming a 10% annual rate, your monthly pension will be Rs 21140. You will also receive a lump sum of Rs 63.41 Lakh.

Benefits

60% of your final withdrawal amount will be exempt from tax if you invest in NPS. The NPS account has a contribution limit of 14%.

Tax exempted from income is the amount that was invested to purchase an annuity.

NPS subscribers can claim a tax deduction up to 10% of their gross income under section 80CCD(1), Income Tax Act.

This limit is 1.5 lakhs under section 80CCE. Additional deductions of up to Rs. 50,000 are available for subscribers under section 80CCE

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