- Date : 28/09/2020
- Read: 7 mins
The National Pension System (NPS) was introduced by the government for the benefit of retirement of the citizens of India since the country does not have any social security schemes in place. While there are various other investments you can make to build your retirement corpus that form a central part of your tax planning, NPS could play a significant role as well. The premium article explores the tax benefits on NPS’s various contributions as well as the withdrawal criteria.
Since India does not have any social security schemes in place for its citizens after they retire, the government introduced the National Pension System (NPS), under which one can contribute and accumulate a retirement fund. It is especially useful for the self-employed as they are not eligible for employees' provident fund (EPF). Only a salaried person can join an EPF scheme, but NPS can be opened by both the salaried and the self-employed.
An individual who has completed 18 years and is yet to complete 65 years can open an NPS account as long as they are a citizen of India (both resident and NRI). Even Overseas Citizens of India (OCIs) are eligible. However, a person of unsound mind or an undischarged insolvent cannot open an NPS account. Moreover, while an NPS account can be o...
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