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Retirement — Basics
NPS gives equity exposure + tax benefits for retirement, but 60% of the corpus must buy an annuity at retirement.
Concept
NPS gives equity exposure + tax benefits for retirement, but 60% of the corpus must buy an annuity at retirement.
NPS is a government-backed retirement scheme with two tiers. Tier 1 (mandatory, locked till 60) lets you invest in equity (up to 75%), corporate bonds, and government securities. You get tax deductions: ₹1.5L under 80C + extra ₹50K under 80CCD(1B).
हिंदी मेंNPS government-backed retirement scheme है। Tier 1 (60 तक locked) में equity (75% तक), bonds, government securities में invest कर सकते हैं। Tax deduction: 80C के ₹1.5L + extra ₹50K (80CCD(1B))।
Example
See it in action
Starting NPS at 25 with ₹5,000/month at 10% returns → ~₹1.1 crore at 60. Plus, the ₹50K extra deduction saves ₹15,600/year in 31.2% bracket = ₹5.5L in tax savings over 35 years.
हिंदी में25 साल में ₹5,000/month NPS 10% returns पर → 60 पर ~₹1.1 crore। Plus ₹50K extra deduction से हर साल ₹15,600 tax बचत।
Key takeaway
Remember this
NPS is great for the extra ₹50K tax benefit. But remember — you can only withdraw 60% as lump sum; 40% must buy an annuity.
NPS isn't just for government employees — anyone can invest, and it offers an extra ₹50,000 tax deduction beyond 80C.
हिंदी मेंNPS ₹50K extra tax benefit के लिए बढ़िया है। लेकिन 60% lump sum और 40% annuity में जाता है।
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