About NPS -

• Government of India introduced NPs for Central Government Employees joining service w.e.f 1st Jan 2004.

• On 1st May,2009, on voluntary basis NPS was made available for all citizens of India and is now being offered to Corporate Sector employees termed as NPS Corporate Sector Model.

• NPS accretes contribution of subscribers (18-60 years) while he/she is working and uses the accumulations at retirement to procure a pension.

• As on 30th September 2013, about 950 corporate with more then 2.05 lacs subscribers & AUM of Rs. 1,670 crores have joined NPs-Corporate Sector Modal.

Distinctive Features of NPS -

Prudentially regulated: Transparent investment norms, regular monitoring and performance review of Pension Fund Managers by NPS Trust.

Portability:NPS account can be operated from anywhere in the country irrespective of employment and geography.

Flexibility:Flexibility to choose PFM, investment option, ASP & annuity scheme.

Low Cost:NPS is perhaps world’s lowest cost pension scheme.

Simple and Web enabled/Online:All transactions can be tracked online through CRA system. Employee can check fund and contributions status through CRA website.

Tax Benefits -

• From 1st April, 2012 Employers Contribution can be deducted as Business Expenses upto 10% of the salary(basic and dearness allowance) U/s 36(1) of IT Act.

• Employee’s contribution is eligible for tax benefit U/s80CCD(1) of IT Act, upto 10% of the salary (Basic and dearness allowance).

• Tax benefit U/s 80CCE of IT Act upto Rs.1,50,000/- (individual tax limit).

• Tax benefit U/s 80CCD(1B) of IT Act up to Rs.50,000.00(individual contribution).

• Employer’s contribution to the account of employees is eligible for additional tax befefit U/s 80CCD(2) of IT Act, upto 10% of the salary (basic and dearness allowance) without any monitory ceiling.

• As per Current provisions, withdrawals under the NPS attract tax under the EET (exempt exempt-taxable) system. However, as per the draft of the DTC presented in Parliament, EEE (exempt-exempt-exempt) tax regime for NPS is being proposed.

Type of Accounts -

• Tire-I account is a non-withdrawable account with tax benefit.

• Tire-II account is a voluntary savings account with withdrawal facility.

Contributions -

• There is an option for Equal/Unequal contributions by employer-employee as may be mutually decided subject to minimum contribution as prescribed by PFRDA.

Investment Option -

• Flexibility to select PFM and Investment option either at Corporate level or Subscriber level.

• Corporate may choose centrally for its employees or leave the option to individual employees for selecting any one of the registered PFMs for themselves, which will manage the funds as per allocation mandate given under E,C,G i.e Active Choice or Auto Choice.

• Asset Class E- Investment in predominantly equity market instrument. Asset Class C-Investment in fixed income instruments other than Government Securities and Asset Class G-Investment in Government Securities.

Getting Money Out -

• Before 60 years of Age, Subscriber has to invest a least 80% of the pension wealth to purchase a life annuity from ASP, which is empanelled by PFRDA and 20% may be withdrawn as lump sum.

• On attaining the Age of 60 years, the Subscriber has to invest minimum 40% pension wealth to purchase a life annuity from ASP, empanelled by PFRDA the remaining amount can either be withdrawn in a lump sum or can be deferred which can be withdrawn between age 60 yrs to 70 yrs.

• Annuity purchase can also be deferred for maximum period of 3 years at the time of exit.

• In case of death due to any cause, the entire accumulated pension wealth (100%) would be paid to nominee/legal heir of the subscriber.

Contact Us

LOCATION: RATICO Pvt Ltd, Mantribari Road Ext., South Side               of Netaji Play Centre , PO:Agartala, West Tripura, India,               Pin: 799001
Mob: +91 9436120705/9856092601
              Telefax: 0381-2385409