The Central Government introduced the National Pensions Scheme for the welfare of the private sector and public sector workers. This scheme helps the workers by providing them with a pension after they retire from their work. Below are the benefits of the national pension scheme:
Additional Tax Benefit: The Finance Bill 2011-12 permits tax deduction on the contribution up to 10% of basic salary and dearness allowance made by an employer towards the National Pension Scheme (NPS) account of an employee under Section 80CCE. Limit of contribution is over and above Rs. 1.5 Lakh.
Low Fee to Intermediaries: The fund management fee for non-government funds have been raised from 0.0009 per cent of assets under management to 0.25 per cent. The change is promoting the National Pension Scheme by offering incentives to distributors and fund managers.
The National Pension Scheme also allows the subscribers to contribute at any point of the financial year, and they are allowed to change the deposited amount in their pension account every year according to the subscriber’s
The subscribers need to open the account in a simple way, and they can open their account in any one of the POP. The alternative way to open the account is through the online portal of NPS (NPS - National Pension System).
The National Pension Scheme is flexible, the subscriber can choose their investment option and pension fund.
The subscribers of the National Pension Scheme have portable access to their account from anywhere. If the subscriber has a job change or location change, then the user can access their account anywhere according to their convenience.