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Who will be the beneficiary?
Under the NPS scheme, you can open an account in your name or in the name of your spouse. The minimum amount to invest in it is Rs 250. Any Indian citizen whose age is between 18 to 70 years can be a beneficiary of this scheme. Apart from this, there is a facility of monthly or annual investment in the NPS account. Apart from this, you can get tax exemption on investment up to Rs 2 lakh.
Do account holders get the benefit of tax exemption?
Beneficiaries of this scheme can avail additional deduction of up to Rs. 50,000. Apart from this, you can get tax exemption on investment up to Rs. 2 lakh.
How to Open an NPS Account
Any Indian citizen between the ages of 18 and 70 can avail this benefit. You can open an NPS account by going to any bank. After the maturity of your account, investors can withdraw 60 percent of the money from their account, on which no tax will be levied. There are two types of accounts in NPS. Tier-1 and Tier-2. Money has to be withdrawn from Tier-1 only after 60 years, while Tier-2 account works like a savings account, from which you can withdraw money as per your need.
How much compensation will be received?
You will become a millionaire by investing thousands. Suppose you invest Rs 5,000 every month in your NPS account. And you continue this investment for 30 years. If you get 10 percent return on your investment till the age of 60, then after the age of 60, the total amount in your NPS account will be Rs 1.12 crore. According to the rule, you will get Rs 45 lakh cash as soon as you turn 60. Apart from this, you will get a pension of Rs 45 thousand per month.
