Invest in NPS for Guaranteed Monthly Pension and Significant Tax Benefits Post-Retirement
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Retirement No Tension: Invest in NPS for Guaranteed Pension & Huge Tax Benefits
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News18•21-03-2026, 17:00
Retirement No Tension: Invest in NPS for Guaranteed Pension & Huge Tax Benefits
•NPS is a government voluntary retirement savings scheme offering a guaranteed monthly income post-retirement.
•It provides a 'double dhamaka' of tax exemption: up to Rs 1.5 lakh under Section 80C and an additional Rs 50,000 under Section 80CCD(1B), totaling Rs 2 lakh.
•Accounts can be opened online (eNPS portal) or at banks/post offices, requiring a minimum annual investment of Rs 1,000.
•Tier-1 account is for retirement savings with tax benefits, while Tier-2 is a voluntary savings account without tax benefits.
•At 60, 60% of the fund can be withdrawn tax-free; the remaining 40% is invested in an annuity for a lifelong monthly pension.
