National Pension Scheme

What is NPS?

• NPS is a simple and flexible pension system that allows you to make regular savings for your retirement.
• NPS is also a good tax planning investment opportunity.
• NPS has been introduced by Government of India and is regulated by Pension Fund Regulatory & Development Authority(PFRDA).
• PFRDA is a statutory body set up by Government of India, under Ministry of Finance.
• Narnolia securities Ltd is registered with PFRDA as POP (Point of Presence) to act as a link between you and NPS.

What are the benefits of NPS?

• It is simple - Just approach any of the branches of Narnolia Securities, we will be happy to assist you.
• It is voluntary – You can contribute any amount (subject to minimum Rs. 1,000 annually), as per your convenience subject to minimum Rs. 500 per contribution.
• Provides you with additional tax saving options.
• It is Flexible - You can choose & change your investment amount, investment option, investment mode, investment fund manager, POP; you think to suit you most.
• It is portable- You can operate your account from anywhere in the country, even if you change your city, job, fund manager, or POP.
• You will have a unique PRAN (Permanent Retirement Account No.) that remains with you for the rest of your life.
• It is a low cost product for retirement planning.
• Your contribution is invested in a portfolio consisting of equity & debt. You can decide the ratio of debt and equity of your investment portfolio.
• It is regulated - NPS is regulated by PFRDA with transparent investment norms as well as regular monitoring & review of performance of fund manager by NPS Trust.

What are the tax benefits?

• Tax deduction limit under Sec. 80 CCD (1): Rs. 1.50 lac. Subject to 10% of basic Salary for salaried subscribers and 20% of gross income in case of self employed.
• In case of Corporate, Employer contribution of 10% Basic +DA is also fully tax free under sec 80ccd(2)
• From F.Y. 2015-16, subscribers will be allowed for exclusive tax deduction in addition to the deduction under Sec. 80C, for contribution in his NPS account subject to a maximum of Rs. 50,000 under Section 80CCD 1 (B).
• Subscribers can withdraw lump-sum 60% at the age of 60. Lump sum withdrawal will not be taxed.

Who can invest?

NPS is open to every Indian citizen (Resident/Non Resident) between the ages of 18 and 70 years at the time of opening NPS Account.

How much to invest?

• You can make contribution as per your convenience, subject to following conditions:
• Minimum amount per contribution - ` 500
• Minimum contribution per year - ` 1,000
• Minimum number of contribution per year -1

What are the investment options?

• NPS offers you two options to invest your money:

Active Choice: You make your choice amongst the Asset Class Equity, Corporate Bond and Govt. Bonds. You can allocate up to 75% of your asset to Equity class asset up to age 50 years.

Auto Choice:Money is invested in all three Asset classes – Equity, Corporate Bonds and Govt. Bonds in defined proportions as per your age; managed automatically by your chosen fund manager.

How will the pension be available?

After attaining the age of 60 and after exiting the NPS, you have to decide the portion of your fund to be transferred to the PFRDA appointed Annuity Service Provider who will provide you with pension as per the plan you choose.

For further information and explanation, Narnolia Securities will be happy to assist you.