Is the New Pension Scheme good for tax saving? Being an SBI account holder, can I avail it?
For detailed information and returns on NPS, please visit - https://retirementplanwithsbi.qu...
As a first step towards instituting pension reforms, Government of India moved from a defined benefit pension to a defined contribution based pension system for its employees, which provides investors an option to avail of reasonable market-based returns over a long run. The Government has introduced the National Pension System (NPS) and made relevant income tax amendments to make it favorable for the corporate sector to offer NPS to their employees.
A citizen of India including NRI between 18 – 60 years of age at the time of submission of NPS application and complied with the KYC (as detailed in the NPS application form) can join NPS.
NPS is based on a unique Permanent Retirement Account Number (PRAN) which is allotted to each subscriber by NSDL. Individual who joins NPS is called Subscriber of NPS.
We have created a dedicated blog for our readers on NPS. We recommend all our readers to visit NPS – an answer to your Tax and Retirement Planning by State Bank of India (SBI) on Why plan retirement? for detailed information.