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      National Pension Scheme (NPS): Benefits and Drawbacks (Series-2)

      Thursday, September 14th, 2017 Amritesh 2 responses

      National Pension Scheme is one of the Government social security initiatives which aims to provide financial cover to the individuals post retirement. The scheme is being widely promoted by the Government and even Corporate Houses are encouraged to avail the scheme so that employees working in private sector are also benefited from the same.   The National Pension Scheme (NPS) is hailed as one of the cheapest and citizen friendly scheme while Personal Finance experts are terming it as an ordinary retirement benefit plan. However, in my opinion it is a decent retirement plan, and like any other financial product it too has its own shares of pros and limitations. In my previous article, I have discussed about the NPS…

      National Pension Scheme (NPS): Retirement Benefit Plan

      Tuesday, September 12th, 2017 Amritesh no responses

      About National Pension Scheme (NPS): An Insight National Pension Scheme (NPS) is introduced by the Government to provide better Social Security to the Individuals post retirement and help them lead comfortable life. The National Pension Scheme (NPS) was launched on 1st January,2004 and was made mandatory for all Central Government Employees. Since 2009 the Scheme has been opened for all the citizens between 18 years to 65 years of age. The NPS is managed by Professional Fund Managers. Now even various State Governments and Corporate entities have also subscribed to the scheme for the benefit of their employees. Pension Fund Regulatory and Development Authority (PFRDA) formed in 2003 by the Government of India to manage and regulate the Funds under…

      Employees’ Pension Scheme (EPS): Should You Opt for Deferred Withdrawal?

      Wednesday, August 30th, 2017 Amritesh 4 responses

      Recently, Government made amendments to the Employees Pension Scheme (EPS) norms allowing Subscribers to defer withdrawal of pension (After 58 years) for minimum of 1 year and maximum of 2 years along with additional interest of up to 8.16% on actual pension. The amendments offer two options to the Subscriber with regard to deferred withdrawal of the pension fund. First, the Subscriber may continue to contribute to the Pension Fund for the extended period and the same will be considered while calculating Pensionable Salary and Pensionable Service. Second, the Subscriber decides to defer the withdrawal for 2 years but opts not to contribute during the deferment period. Employees' Pension Scheme (Series-1) Benefits Under Employees' Pension Scheme (Series 2) Calculation Of…

      Employees’ Pension Scheme (EPS): Increase Your Pension with Deferred Withdrawal

      Monday, August 28th, 2017 Amritesh no responses

      Government recently made few amendments to the Employees’ Pension Scheme (EPS). These amendments are aimed at reducing the deficit in Pension Fund and provide Subscribers with an option to receive higher pension. The new changes allow Subscribers to defer withdrawal of pension for 1 year or 2 years after reaching the age of 58 but not beyond 60 years. Member will enjoy an additional increase of 4% in case of deferral for 1 year and 8.16% in case of deferral for 2 years. Members will also have the option to contribute to the Pension Fund till the age of 60 which would be included while calculating pensionable service and contribution period. Members who do not wish to contribute during the…

      EPS vs NPS vs APY: Retirement Benefit Comparison

      Tuesday, July 18th, 2017 Amritesh no responses

      Retirement Planning is not just about saving for the future rather it involves systematic approach towards accumulation of corpus which would be sufficient to meet the financial obligations post retirement. Individuals may avail various retirement plans provided by the Insurance Companies or invest in Mutual Funds or Public Provident Fund (PPF) which provides lump sum or regular income post retirement. However, many are often confused or not aware of the probable retirement benefit plans which they can avail. Government is also very serious regarding the same as it wants individuals to plan for the retirement while they are young and earning. It has launched various schemes and created awareness about it so that more and more individuals avail those schemes…

      Atal Pension Yojana (APY): Online Account Statement For The Subscribers

      Tuesday, June 13th, 2017 Amritesh no responses

      Subscribers to the Atal Pension Yojana (APY) may now download the statement of their contribution to the scheme online by providing the relevant account related information. APY does provide hard copies of the statement but many of the subscribers are not in receipt of the same. However, for Income Tax declaration and various other purpose the statement is often required. Contribution to Atal Pension Yojana (APY) is eligible for Tax Deduction U/S 80 CCD (1b) thereby making it a decent retirement plan for the individuals. Individuals aged between 18-40 years are eligible to subscribe to the scheme. The minimum monthly contribution which may be made to the scheme is Rs 42/- while maximum monthly contribution is capped at Rs 1,454/-…

      FATCA Compliance for National Pension Scheme (NPS)

      Saturday, June 3rd, 2017 Amritesh one response

      Subscribers to the National Pension Scheme (NPS) are now required to complete the FATCA Compliance online. The option is available to the Subscribers to complete the compliance by logging onto the portal and submitting the required information. It is mandatory for the Subscribers who have subscribed to the scheme on or after 1st July, 2014 to be FATCA compliant. National Pension Scheme (NPS) is the retirement benefit plan for the Individuals aimed at providing better standard of living during the old age. The online certification is also mandatory for the Subscribers who have already sent physical documents to CRA for the same purpose. Earlier, Central Recordkeeping Agency (CRA) had announced Subscribers need to send the hard copies of the documents…

      Annuity Retirement Plans: Types and Benefits

      Sunday, May 14th, 2017 Amritesh no responses

      Life is short but our career is even shorter. Hence, when planning for future it is always advisable to plan for your retirement as well. The earlier you start the better it is to plan your investment. Annuity is a Financial Product offered by Insurance Companies, aimed at providing steady source of income to the Annuitants (Purchaser of Annuity Plans). The primary aim of such plan is to provide financial cover on retirement to the individuals, and ensure that one is able to sustain him/herself. It is one of the retirement benefit plan which may be considered by Individuals who are looking at steady income plans post their retirement. There are primarily two types of Annuity Plans currently offered in…

      National Pension Scheme (NPS) : All Citizen Model (Series-1)

      Wednesday, April 5th, 2017 Amritesh 3 responses

      National Pension Scheme (NPS) was introduced by the Government of India in 2004. The scheme is aimed at the providing financial security to individuals post retirement. The Scheme has been opened for all the citizens since 2009. The scheme is designed to maintain a balance between return and risk, so that Individuals are protected from adverse market scenarios and also are able maximize their investment. I have posted about the National Pension Scheme (NPS) in a nutshell previously. You may visit the link below to find out more: EPS vs NPS vs APY: Comparison National Pension Scheme National Pension Scheme (NPS): Benefits and Drawbacks (Series-2) In this post, I will discuss about the National Pension Scheme (All Citizen Model) in…

      Applicability of Tax on Retirement Benefits

      Sunday, September 4th, 2016 Amritesh no responses

      Employees receive monetary benefits at the time of retirement. Such benefits are taxable under the head, “Salaries” as it is profits paid in lieu of salary. Certain tax exemption wholly or partially is also granted on such benefits under the Income Tax Act, 1961. Tax exemption is available U/S 10 of the Income Tax Act. The exemption granted may be wholly or partially depending on the nature of benefit. These tax exemptions are provided on retirement benefits to reduce the financial burden. Furthermore, these financial benefits are for Individuals to sustain themselves and lead a comfortable life when they are no longer employed.   Employees’ Provident Fund (EPF)   Employees’ Provident Fund (EPF) is the lumpsum benefit paid to the…