NPS / PRAN
Would you like details on how to open an NPS account?
NPS (National Pension System) & PRAN (Permanent Retirement Account Number)
NPS (National Pension System):
NPS is a government-backed retirement savings scheme designed to provide financial security after retirement. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and is open to all Indian citizens (including NRIs) aged 18-70 years.
PRAN (Permanent Retirement Account Number):
PRAN is a unique 12-digit identification number assigned to each NPS subscriber. It helps track the contributions and pension funds under the NPS scheme.
Benefits of NPS/PRAN
Tax Benefits:
Under Section 80CCD(1): Deduction up to ₹1.5 lakh (part of 80C).
Additional ₹50,000 under Section 80CCD(1B) (over and above 80C limit).
Market-Linked Returns:
Investments are diversified across equity, corporate bonds, and government securities for potentially better returns.
Low-Cost Pension Scheme:
NPS has one of the lowest fund management charges among pension schemes.
Flexibility & Portability:
Subscribers can choose fund managers, investment options, and switch between them.
PRAN remains valid across job changes, cities, and states.
Regular Pension Post-Retirement:
On maturity at 60 years, up to 60% of the corpus can be withdrawn tax-free, while the remaining 40% is used to buy an annuity for a regular pension.
Voluntary Contributions:
Subscribers can invest as per their convenience (monthly, quarterly, or annually).
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