The 12-digit unique identification number in your Aadhaar card has become the one point source for all your needs, which is not limited to only an identity proof or an address proof, but it is also expanding its dimensions to help people go digital. Aadhaar is used as a verification authentication to do your KYC under NPS accounts.
If you want to get monthly income after your retirement, you need to start saving in an NPS account. National Pension Scheme is a post-retirement scheme regulated by the Pension Fund Regulatory and Development Authority of India (PFRDA), introduced under the Government of India (GOI). The account can be opened by an individual or a body corporate.
It consists of two accounts – tier 1, which is a non-withdrawal pension account and it is mandatory to open. The withdrawals can only be made after retirement attaining the age of 60. Tier 2 is a partial withdrawal account with certain percentage limitations of withdrawals from time to time. Maximum 3 withdrawals can be done during the lifetime with a minimum gap of 5 years between each one of them.
Who can open an NPS account?
Any citizen of India (resident or non-resident) attaining an age between 18-60 years and complying with all the KYC norms can open an NPS account. NRIs can open their account subject to some conditions – they should have a bank account with an Indian bank having a base in India and a self-attested copy of passport. Contributions are made under the guidelines provided by RBI and FEMA which may change from time to time.
What are its benefit?
- Opening an account under NPS will give you an additional tax benefit of Rs.50,000 under section 80CCD(1B) of ITA 1961, over and above the limit of Rs 1.5 lakh under section 80C.
- There is no upper limit of savings under an NPS account. However, minimum contribution under an NPS account should be of Rs 500 per month and Rs.6000 per year.
- NPS accounts are opened under the clear guidelines of PFRDA where NPS trust actively manages the performance of funds by its fund managers.
- NPS provides flexibility in choosing funds for investment under different asset classes.
- How to create a pension account through eNPS?
- Follow these 10 simple steps to create your pension account through eNPS:
- Step1: Visit the official website of NPS : https://enps.nsdl.com/eNPS/NationalPensionSystem.html
- Step2: For new registration or completing the pending registration click on the ” new registration” or “completing pending registration” tab appearing on the home screen.
Step3: New users need to select the ‘new registration option’.
Step4: If you want to open your own NPS account click on ‘Individual Subscriber’ else for opening an account for a corporate firm click on ‘corporate subscriber’.
Step5: Select the ‘Aadhaar’ option to register yourself with eNPS account.
Step6: Select the account type from – Tier I & Tier II or Tier I only.
Step7: Enter the 12-digit Aadhaar number as mentioned in your Aadhaar card. Make sure that your Aadhaar card is linked with a registered mobile number.
Step8: After your KYC is processed through Aadhaar link, you will be routed to the payment gateway for making payment in an NPS account.
Step9: You need to take the print out of the form attach your photograph and do the signatures as mentioned.
Step10: Send the form to central recordkeeping agency (eNPS) within 90 days.