India's Central Govt runs the National Pension Scheme (NPS) for employees belonging to the public and private sectors, excluding armed forces. NPS was introduced in 2004 January, and by 2009 it was opened to all the sectors of work. This scheme allows the users to deposit their part of income in a pension account during their working period. The users can claim their pension amount that is saved during their working period. This saved pension amount can be claimed by the user in terms of a lump sum. Only those who are a citizen of India are eligible for this pension scheme. The eligible age is between 18 to 60, and during this period a person can join the pension program. Non-resident Indian can also join the national pension scheme, but if their citizenship changes, the account will be cancelled. The national pension scheme consists of many benefits that help users.
Scheme has tax benefits of under section 80C and 80CCD of additional Rs 50,000 over and above Rs 1,50,000 tax slab.The minimum contribution is Rs.6000, which can be paid in 1 payment or instalments of a minimum of Rs. 500.
Post Retirement, NPS holders can withdraw a certain percentage of the amount. The remaining amount is received as a monthly pension amount.
