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National Pension System, commonly known as NPS, is a pension scheme backed by the Government of India that lets people generate a considerable amount of corpus at the time of retirement. NPS is managed by Pension Fund Regulatory and Development Authority (PFRDA), which has advised subscribers to link Aadhaar with NPS accounts.
In 2004, the Government of India launched this schemeto provide benefits to government employees which was extended for everyone in the year 2009. A subscriber has to open a single NPS account in which he is required to deposit at least Rs. 6,000 on a monthly basis. From the NPS, a part of the amount in lump sum is allowed to be withdrawn by the subscriber. The remaining part is utilised to purchase an annuity and to ensure that he gets a regular income after retirement.
For linking the NPS account with Aadhaar, an individual can perform these steps:
It is important to note that the name mentioned in PFRDA should match with the name that you have mentioned on your Aadhaar card.
For a new subscriber, it is extremely easy to open an NPS account online and link it with Aadhaar at the time of opening. Simply follow the steps mentioned below to link the NPS account with Aadhaar:
It is vital to keep the following factors in mind when you intend on linking your Aadhaar number with your NPS account:
There are various benefits associated with linking your NPS account with Aadhaar. Some of them are as follows:
How do I open NPS account online using Aadhaar Card?
To open NPS account online using Aadhaar card, simply follow the steps mentioned below-
Can we withdraw NPS amount?
Yes, partial withdrawal of up to 25% is allowed from the corpus for emergencies and retirement.
What are the tax benefits of NPS?
A tax benefit of Rs. 50000 is allowed over and above the benefit of Rs. 1.5 Lakhs which can be claimed as a deduction under Section 80CCE of the Income Tax Act, 1961.
What is the NPS account?
National Pension System, commonly known as NPS, is a pension scheme backed by the Government of India that lets people generate a considerable amount of corpus at the time of retirement.
What is Tier 1 account in NPS?
Tier 1 account in NPS is a rigid retirement account which provides a host of tax breaks. This account is primarily to help you save for your retirement systematically.