NPS bonanza for govt employees: More tax benefits, higher centre’s contribution
6 years, 3 months ago

NPS bonanza for govt employees: More tax benefits, higher centre’s contribution

Live Mint  

New Delhi: Finance Minister Arun Jaitley today announced big changes to the National Pension System or NPS, making it more attractive for central government employees. Apart from higher government contribution to NPS, Jaitley also announced additional tax benefits for the pension scheme for all categories of employees. Here are the changes to NPS announced by Jaitley for government employees: 1) The government will contribute a higher 14% of the basic salary of its employees as its contribution, instead of 10% earlier. Investment in Tier II account of NPS will have the same tax benefits as that of other schemes such as general provident fund, contributory provident fund, employees provident fund and public provident fund.

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History of this topic

Why NPS should be a part of your retirement plan? 5 things to know
1 month ago

Why NPS should be a part of your retirement plan? 5 things to know

India Today  

Retirement planning is essential to a stress-free and financially secure future. Higher Returns with NPS When compared to traditional fixed-income investments like fixed deposits and Public Provident Funds, NPS offers superior returns over the long run. Investments under NPS are overseen by qualified pension fund managers, ensuring the majority of your contributions are invested towards wealth creation rather than paying …

New tax regime: 3 deductions that can help taxpayers maximise savings
1 month ago

New tax regime: 3 deductions that can help taxpayers maximise savings

India Today  

The government, with the aim of simply personal taxation, introduced the new tax regime. Out of the total 7.28 crore ITRs filed, 5.27 crore were under the new regime, while 2.01 crore were filed under the old tax regime for AY 2024-25, indicating nearly 72% of taxpayers have shifted to the new system. Though the new regime offered concessional tax …

Invest in NPS or EPF? Experts explain benefits of retirement savings schemes
1 month, 1 week ago

Invest in NPS or EPF? Experts explain benefits of retirement savings schemes

Hindustan Times  

Salaried individuals in India usually plan their retirement keeping in mind the National Pension Scheme and the Employee Provident Fund. Abe Abraham, Partner at Cyril Amarchand Mangaldas, told Livemint, “Not all employers offer NPS but if your employer does it, you can request them to make employer contribution part of your salary. Tax benefits of NPS and EPF Employer contribution …

Why NPS can be your only retirement plan
1 month, 2 weeks ago

Why NPS can be your only retirement plan

New Indian Express  

The benefits of the National Pension Scheme significantly far outweigh the effort needed to learn and understand about investing. For years, you have put aside money for your retirement through employee provident funds, public provident funds, other government guarantee schemes or fixed deposits. Pension schemes across many countries in Europe are based on government guarantees. In India, 32.7 crore people …

Budget 2025: Tax benefit for parents contributing to children welfare plan NPS Vatsalya
1 month, 3 weeks ago

Budget 2025: Tax benefit for parents contributing to children welfare plan NPS Vatsalya

Live Mint  

NPS Vatsalya Scheme, the children's welfare scheme launched on 18 September 2024, received a boost on Saturday when the Union budget proposed to extend the tax benefits available to the National Pension Scheme under sub-section of section 80CCD. The parent or guardian contributing to the NPS Vatsalya account will be allowed to claim deduction to the extent of the contributions; …

Centre finally notifies Unified Pension scheme option for government staff covered by NPS
2 months ago

Centre finally notifies Unified Pension scheme option for government staff covered by NPS

The Hindu  

Five months after the Centre announced a new Unified Pension Scheme with assured benefits for government employees, the Finance Ministry late on Friday notified the scheme as an option for workers covered by the National Pension System to be effective from April 1, 2025. The NPS, originally known as the New Pension Scheme, did not offer an assured pension to …

National Pension Scheme: Busting The Common Myths About NPS
2 months ago

National Pension Scheme: Busting The Common Myths About NPS

ABP News  

By Kurian Jose The National Pension System offers great tax-saving opportunities, but there are myths that often confuse potential investors. Myth 1: NPS Tax Benefits Are Just Like Other Investments Reality: NPS offers unique tax benefits beyond the traditional Section 80C: Section 80 CCD : Up to Rs 1.5 lakh. Myth 6: You Cannot Invest in NPS If You’ve Exhausted …

New NPS contribution rules and guidelines for central govt employees announced: Check details
5 months, 2 weeks ago

New NPS contribution rules and guidelines for central govt employees announced: Check details

Hindustan Times  

The government has notified new NPS rules with updated contribution guidelines for leave and suspension which may increase retirement savings and pensions for central government employees, according to a Financial Express report. The Department of Pension and Pensioners’ Welfare has thus, notified the Central Civil Services Rules, 2021, in an October 07, 2024 memorandum, of new guidelines detailing the government’s …

NPS Vatsalya Pension Scheme Explained: How It Aims To Secure The Future For Children. Details Inside
6 months ago

NPS Vatsalya Pension Scheme Explained: How It Aims To Secure The Future For Children. Details Inside

ABP News  

NPS Vatsalya scheme: In a major initiative to secure the financial future of children in India, the Centre has introduced the NPS Vatsalya Pension Scheme, providing flexible contributions and investment options for parents or guardians. The National Pension System Vatsalya scheme is set to foster a culture of savings from an early age, ensuring long-term financial security for India's younger …

Budget 2024: Central govt employees may receive 50 per cent of last drawn salary as pension under NPS
8 months, 2 weeks ago

Budget 2024: Central govt employees may receive 50 per cent of last drawn salary as pension under NPS

India TV News  

As the Finance Ministry prepares to present the 2024–25 fiscal year budget, the National Democratic Alliance government is contemplating a significant reform for central government employees. According to a report by the Times of India, the government may offer 50% of the last drawn salary as a pension under the National Pension System. Addressing employee concerns This proposed move aims …

NPS scheme may get a makeover in Interim Budget 2024
1 year, 2 months ago

NPS scheme may get a makeover in Interim Budget 2024

India Today  

India is expected to consider extending tax concessions on contributions and withdrawals in the upcoming Interim Budget 2024, in an effort to make the National Pension Scheme more attractive, as per a Deloitte report The government might specifically focus on individuals aged 75 and above. Corporations enjoy tax exemptions for contributions up to 10 per cent of the basic salary …

Over ₹10 lakh crore under its watch, NPS to ease withdrawal options
1 year, 6 months ago

Over ₹10 lakh crore under its watch, NPS to ease withdrawal options

The Hindu  

State governments that have ostensibly opted out of the National Pension System for their employees and have reverted to the Old Pension Scheme that guaranteed 50% of final salary as monthly pension, continue to remit due contributions to the NPS corpus. State government employees account for the largest chunk of the savings pool which crossed ₹10 lakh crore on August …

Rethink on NPS for govt. employees: Committee formed under Finance Secretary, no deadline set
1 year, 11 months ago

Rethink on NPS for govt. employees: Committee formed under Finance Secretary, no deadline set

The Hindu  

The Finance Ministry on Thursday notified the formation of a committee to review the pension system for government employees as announced by Finance Minister Nirmala Sitharaman in Parliament, while moving amendments to the Finance Bill of 2023. The order does not specify a deadline for the panel, which Ms. Sitharaman had said was being formed as “representations have been received …

National Pension System: From Tax Benefits, Schemes To Withdrawal. Know Everything About The Pension Scheme
2 years ago

National Pension System: From Tax Benefits, Schemes To Withdrawal. Know Everything About The Pension Scheme

ABP News  

If you are considering an avenue to invest for retirement planning, then you can consider National Pension System as it offers a range of investment options and a choice of pension fund schemes. NPS Tier-1 account Tier I – Pension account Minimum Contribution during A/C opening is Rs.500 for Tier I NPS Tier-2 account Tier II – Investment account The …

National Pension System (NPS): Why you must opt for this scheme
2 years ago

National Pension System (NPS): Why you must opt for this scheme

Live Mint  

NPS offers a high degree of flexibility to subscribers' in making their contributions, choice of fund manager and allocation of investments according to one’s risk appetite. 2) Husband-wife duo can enroll: Since NPS is an individual pension account, self-employed couples who run their family business can open separate NPS accounts and avail the tax benefits in their individual capacity. Not …

Why you should consider National Pension System (NPS) over other annuity scheme?
2 years ago

Why you should consider National Pension System (NPS) over other annuity scheme?

Live Mint  

NPS scheme: The National Pension System helps in creating a stable income source for every individual post-retirement. According to tax and investment experts, NPS provided an affordable investment model among other annuity plans available in the market along with income tax benefits. On why one should choose NPS over other annuity schemes available in market, Sreekanth Nadella, MD and CEO …

Income Tax: With deductions of Rs 2 lakh per year, is NPS still the best tax-saving financial instrument?
2 years, 1 month ago

Income Tax: With deductions of Rs 2 lakh per year, is NPS still the best tax-saving financial instrument?

Live Mint  

During this peak tax planning quarter of Jan-Feb-Mar, you must be busy exploring various financial products that can give you the maximum tax benefits. Every financial year, the deduction can be claimed for the amount contributed up to: 10% of the salary for employees 20% of the gross total income for self-employed individuals However, the aggregate of deductions under Section …

Only 76 of over 1.10 lakh govt employees opt for new pension scheme in Jharkhand
2 years, 2 months ago

Only 76 of over 1.10 lakh govt employees opt for new pension scheme in Jharkhand

Hindustan Times  

Of the 114,321 government employees in Jharkhand who were given the option to choose between the new and old pension schemes, only 76 opted to continue with the NPS as of December 28, people aware of the development said on Thursday. Going by the law of averages, all long-term investments in the market gives you a return of around 11-12 …

NPS subscribers can now invest up to 75% in equity — Know all about it
2 years, 4 months ago

NPS subscribers can now invest up to 75% in equity — Know all about it

Firstpost  

PFRDA has decided to allow an option to allocate 100 percent of a subscriber’s contribution to Asset Class E in Tier-II under the active choice without any conditions of tapering from the age of 51 years The equity allocation guidelines for National Pension System accounts have been recently modified by the Pension Fund Regulatory Authority. Further, PFRDA has decided to …

NPS Subscribers Can Now Invest Up To 75% In Equity — Here's What It Means
2 years, 4 months ago

NPS Subscribers Can Now Invest Up To 75% In Equity — Here's What It Means

News 18  

The Pension Fund Regulatory Authority has recently revised the equity allocation standards for National Pension System accounts. As a result, NPS subscribers can now invest up to 75 percent of their funds to equity under active choice without any conditions of tapering from the age of 51 years as earlier. Under NPS-All Citizen Model, as of now, subscribers have the …

National Pension System: Check how to apply for NPS Tier II account
2 years, 5 months ago

National Pension System: Check how to apply for NPS Tier II account

Firstpost  

The subscribers of the National Pension System’s Tier I should also open a Tier II account for flexibility in investments and withdrawals The National Pension System is a voluntary, long-term pension scheme which provides an opportunity to investors to go for both debt and equity exposure through a single investment tool. However, in a Tier II account, the subscribers need …

NPS for Corporate Employees: Know About Additional Avenue For Retirement Planning
2 years, 7 months ago

NPS for Corporate Employees: Know About Additional Avenue For Retirement Planning

News 18  

The National Pension System, a government- What is National Pension System? The NPS Corporate Sector Model is the customised version of core NPS to suit various organisations and their employees to adopt NPS as an organised entity within the purview of their employer-employee relationship. The Risk Rating System Recently, the Pension Fund Regulatory and Development Authority of India rules have …

NPS scheme: 5 reasons to opt this plan for better return with minimum risk
2 years, 7 months ago

NPS scheme: 5 reasons to opt this plan for better return with minimum risk

Live Mint  

NPS scheme: The National Pension System is a unique pension plan backed by the Government of India, which provides both equity and debt exposure in single investment. Speaking on the reason for NPS scheme gaining popularity among investors, Ajit Kumar, Chief Strategy Officer at KFintech said, "One of the reasons NPS is growing in popularity is its highly simple and …

NPS Subscribers Can Now Change Investment Pattern 4 Times In A Year; Check NPS Details
2 years, 9 months ago

NPS Subscribers Can Now Change Investment Pattern 4 Times In A Year; Check NPS Details

News 18  

National Pension System‘s subscribers will now have an option to change their asset allocation four times in a financial year. It is a government- Schemes Under the NPS In the National Pension System, there are multiple pension fund managers and investment options. “Schemes of the National Pension System are becoming an important asset for investment for long-term saving of the …

NPS Update: Centre Mulling Over Raising Annuatised Pension Withdrawal Amount
2 years, 11 months ago

NPS Update: Centre Mulling Over Raising Annuatised Pension Withdrawal Amount

News 18  

In the wake of some states mulling over re-introducing the old pension scheme for their staff, the central government is planning to make the reform-oriented National Pension System more attractive by increasing its annuatised amount for the employees, according to a report. Under the NPS, a person is allowed to withdraw 60 per cent of the accumulated corpus contributed during …

NPS scheme: Government employees must know these rules to avail big benefits
3 years ago

NPS scheme: Government employees must know these rules to avail big benefits

India Today  

The National Pension System is an essential savings scheme for central government employees. NPS ACCOUNT OPENING RULES An NPS account of central government employees is opened immediately on joining the service. INVESTMENT IN NPS ACCOUNT An employee can make contributions above the mandatory limit of 10 per cent in Tier I account of NPS. On exit from NPS on 60 …

Income Tax Rule Change: Tripple Tax Benefits on NPS; Know How it Works, Who Can Claim
3 years ago

Income Tax Rule Change: Tripple Tax Benefits on NPS; Know How it Works, Who Can Claim

News 18  

Finance minister Nirmala Sitharaman announced that state government employees will now be able to claim tax benefit of 14 per cent on the National Pension System made by their employer from financial year 2022-23. At present, only the central government employees are allowed to claim tax benefit of 14 per cent for the employer’s contribution to their NPS accounts. NPS …

Govt employees must take note of this big change in pension contribution
3 years, 1 month ago

Govt employees must take note of this big change in pension contribution

India Today  

To provide equal treatment for both central and government employees, Finance Minister Nirmala Sitharaman in her Union Budget 2022 speech announced that the central government proposed to increase tax deduction from 10 per cent to 14 per cent on contributions to the National Pension System by the state government for its employees. WHAT THIS MEANS FOR GOVT EMPLOYEES The Central …

Budget 2022: NPS exemption raised for state govt staff. An explainer
3 years, 1 month ago

Budget 2022: NPS exemption raised for state govt staff. An explainer

Live Mint  

Contributions made by subscribers to the government’s pension scheme NPS are exempt from income tax. In the Budget 2022, the finance minister Nirmala Sitharaman raised the tax exemption limit on employer’s contribution from 10 percent to 14 percent for state government employees. Exemption on contribution The subscribers of National Pension System can claim tax exemption under section 80CCD within the …

Budget 2022: Tax benefits to NPS for state govt employees hiked from 10% to 14%
3 years, 1 month ago

Budget 2022: Tax benefits to NPS for state govt employees hiked from 10% to 14%

Hindustan Times  

Tabling the Union budget in the Lok Sabha, Union finance minister Nirmala Sitharaman on Tuesday proposed an increase in the tax deduction limit from 10 per cent to 14 per cent on employers' contribution to the National Pension System account of the state and central government employees. Tax deduction limit raised from 10 per cent to 14 per cent on …

Budget 2022: Tax deduction hiked from 10% to 14% on NPS accounts
3 years, 1 month ago

Budget 2022: Tax deduction hiked from 10% to 14% on NPS accounts

India TV News  

Budget 2022: Tax deduction hiked from 10% to 14% on NPS accounts Announcing income tax-related changes, Sitharaman said, "to provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year." Highlights Tax deduction hiked from 10% to 14% on NPS accounts, Sitharaman announced Currently, only central government employees are …

NPS could get additional income tax benefits: Key things to know
3 years, 2 months ago

NPS could get additional income tax benefits: Key things to know

Live Mint  

People have a lot of expectations from Nirmala Sitharaman's Union Budget 2022. The additional deduction limit under the National Pension Scheme could be raised from ₹50,000 to ₹1 lakh this year. However, an increment in the limit for additional deduction for NPS investments would also amount to a similar correct step in the right direction,” he said. Amit Gupta, MD, …

Should you invest in NPS just for the tax benefits?
3 years, 5 months ago

Should you invest in NPS just for the tax benefits?

Live Mint  

National Pension Scheme is an essential retirement planning tool. NPS investment has two options Active mode: The investor can evaluate the return annually and switch from equity to debt and debt to equity options in the active mode. This scheme has brought the comfort of the monthly pension enjoyed by the government employees to others like employees, freelancers, self-employed, etc.,” …

Govt Approves Hike in Employer's Contribution to NPS for CAB Employees
3 years, 6 months ago

Govt Approves Hike in Employer's Contribution to NPS for CAB Employees

News 18  

In a bonanza to Central Autonomous Bodies’ employees, the Ministry of Finance has approved the increment of employer’s contribution to the National Pension Scheme to 14 per cent. The decision comes over two years after the contribution rates were increased for the central government employees in a notification dated January 31, 2019. However, since CAB employees are not directly central …

NPS scheme: 5 benefits of National Pension System that you should know
3 years, 8 months ago

NPS scheme: 5 benefits of National Pension System that you should know

Live Mint  

NPS scheme: National Pension System is a retirement-oriented investment option that provides a periodic annuity and a lump sum corpus on the attainment of retirement age. NPS scheme is one of the ideal pension and retirement planning schemes available in India for salaried, self-employed professionals and freelancers like lawyers, doctors, chartered accountants, entrepreneurs, architects and others who work in their …

Budget 2021: ’Govt needs to make NPS fair for all subscriber categories’
4 years, 2 months ago

Budget 2021: ’Govt needs to make NPS fair for all subscriber categories’

Live Mint  

The Union Budget will be presented on 1st February so I thought of making some suggestions to remove some anomalies and inequalities in the Income Tax Act provisions to make the NPS system fair and little more better for everyone. Under the EPF scheme the subscriber gets whole of the accumulated funds to his credit as tax-free at his retirement …

NPS schemes deliver returns up to 22% in one year
4 years, 2 months ago

NPS schemes deliver returns up to 22% in one year

Live Mint  

National Pension System schemes show stellar performance as the equity and debt schemes by all the pension fund managers gave double-digit returns in the last one year. As the stock markets soared to new highs, the Scheme E of NPS delivered as high as 22% returns in the last one year, in line with the benchmark returns. HDFC Pension Fund …

Higher income tax deduction on NPS likely for private sector employees
4 years, 2 months ago

Higher income tax deduction on NPS likely for private sector employees

Live Mint  

In the Budget 2021, tax experts expect the government to fix some anomalies in the NPS with regard to income tax benefits. "For contribution towards Tier I account up to 14% of the employer’s contribution is permitted for central government employees but when it comes to other employees maximum up to 10% of the contribution from employer is eligible for …

National Pension System Has Not Ensured Coverage of All Eligible Employees, CAG Audit Finds
4 years, 6 months ago

National Pension System Has Not Ensured Coverage of All Eligible Employees, CAG Audit Finds

News 18  

Mandatory contribution based retirement fund scheme National Pension System has not ensured full coverage of all eligible government sector employees even after 15 years of implementation and there have been delays related to deductions, bills and remittances, a CAG report said on Wednesday. The performance audit was undertaken to get an assurance that the system of NPS was established as …

With 11% returns, NPS Tier II outshines bank FDs, liquid funds
4 years, 6 months ago

With 11% returns, NPS Tier II outshines bank FDs, liquid funds

Live Mint  

Tier II account of National Pension System has outperformed most fixed income investments. With 11.11% returns in the last one year, Scheme G of NPS Tier II has outperformed liquid debt mutual funds and savings bank fixed deposits by a wide margin. In the last three years, NPS Tier II account has given annualised return of 9.53% and in the …

Pandemic spurs more private sector enrolments in NPS
4 years, 8 months ago

Pandemic spurs more private sector enrolments in NPS

The Hindu  

The uncertainties emerging out of the COVID-19 pandemic seem to have expedited enrolments in the National Pension System, a voluntary defined contribution pension scheme of the Government of India, as many private sector employees and employers were found to be seeking financial security, post retirement, through pension schemes. As per data released by the Pension Fund Regulatory and Development Authority, …

Here are 7 benefits to invest in National Pension System
4 years, 9 months ago

Here are 7 benefits to invest in National Pension System

India Today  

While we all are dealing with the covid-19 pandemic crisis, the topmost priority for all of us is to be safe. Subscriber contributing to NPS enjoys the following tax benefits: Tax Benefit 1: Deductions on subscriber’s contribution NPS contributions are eligible for tax deduction u/s 80 CCD of ITax Act or 20% of Gross Income for others) within the overall …

National Pension Scheme (NPS) changes financially untenable: Finance Ministry
4 years, 9 months ago

National Pension Scheme (NPS) changes financially untenable: Finance Ministry

Live Mint  

The Finance Ministry has ruled out proposals by a federation of central and state governments employees seeking modification in the National Pension Scheme, saying its corpus is invested in a prudential manner to ensure optimal returns and suggested that changes will be financially untenable. "In fact, the Asset Under Management of the central government and state government schemes have been …

Covid-19: Time for liberal withdrawal options for retirement funds
4 years, 10 months ago

Covid-19: Time for liberal withdrawal options for retirement funds

Hindustan Times  

We are in the midst of a severe economic and financial crisis. The Employees’ Pension Scheme IS one of the three schemes administered by EPFO that enables a subscriber to receive monthly pension payments As the Nobel laureate, Milton Friedman, writes: “Only a crisis – actual or perceived – produces real change. It is akin to full provident fund withdrawal …

Understanding the National Pension Scheme: A Beginner’s Guide
5 years ago

Understanding the National Pension Scheme: A Beginner’s Guide

India TV News  

BY ADHIL SHETTY Some investments are meant to be done for the long-term. HOW TO INVEST IN THE NATIONAL PENSION SCHEME If a person has opened a Tier I account under the National Pension Scheme, they will be required to deposit Rs.1,000 per year at the minimum. The key to investing in the National Pension Scheme is to not look …

Plan your retirement with National Pension Scheme
5 years, 1 month ago

Plan your retirement with National Pension Scheme

Hindustan Times  

Looking to increase your retirement fund? The National Pension Scheme is one such scheme that can help you plan your retirement, save tax on it as you invest, and eventually give you a corpus to invest in annuity on your retirement. NPS has a two-tier structure—a pension account that gives tax benefits and is mandatory to open for NPS and …

Union Budget 2020-21: Pension fund regulator wants govt to double tax benefit under NPS to Rs 1 lakh
5 years, 3 months ago

Union Budget 2020-21: Pension fund regulator wants govt to double tax benefit under NPS to Rs 1 lakh

Firstpost  

Pension fund regulator PFRDA is pitching for doubling the tax benefit under the NPS to Rs 1 lakh in the upcoming Budget, according to a whole-time member of the authority New Delhi: Pension fund regulator PFRDA is pitching for doubling the tax benefit under the NPS to Rs 1 lakh in the upcoming Budget, according to a whole-time member of …

Income tax benefits on NPS: New rules that came into effect this year
5 years, 4 months ago

Income tax benefits on NPS: New rules that came into effect this year

Live Mint  

The government has been amending NPS or National Pension Scheme rules to make the pension scheme more subscriber-friendly. Most recently, the government had raised income tax exemption limit for lumpsum withdrawal on maturity from NPS to 60%, from 40% earlier. Here are 5 things to know about recent changes in NPS rules: 1) In Union Budget 2019, the government had …

NPS withdrawal set to get tax-free status like PPF, EPF
5 years, 8 months ago

NPS withdrawal set to get tax-free status like PPF, EPF

Live Mint  

The Union Cabinet had last year approved an increase in income tax exemption limit for lumpsum withdrawal on exit from National Pension Scheme, effectively making withdrawal from the pension scheme 100% tax-free. But, according to tax experts, this tax benefit for NPS has not yet been notified and they are hoping that the government will implement it in this year’s …

Making NPS more attractive for investors
5 years, 9 months ago

Making NPS more attractive for investors

Live Mint  

Come Budget time and the buzz on expectations from the common man intensifies. Investors in NPS tend to compare the scheme’s architecture, which has mandated the purchase of annuity to provide for sustained regular income post retirement, with other options such as mutual funds, monthly income schemes and systematic investment plans etc. Another area that could help in bringing investors …

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