Arihant Capital National Pension System (NPS) : arihantcapital.com

Organisation : Arihant Capital
Facility Name : National Pension System (NPS)
Country : South Africa
Website : https://www.arihantcapital.com/national-pension-scheme-nps

What is Arihant Capital National Pension System (NPS)?

Arihant Capital National Pension System (NPS) is pension cum investment scheme initiated by Government of India to provide old age security to citizens of India. It is a pure retirement pension plan, in which you can get a stable income with tax benefits after your retirement and it offers you the option to choose from different pension plans based on your risk profile.

Related / Similar Facility : Abhipra Capital myNPS National Pension System (NPS) Account Opening

Eligibility of Arihant Capital National Pension System (NPS)

1. Every Indian citizen (including NRIs) who is between 18-65 years is eligible to invest in NPS. However, the person should not be undischarged insolvent or of unsound mind.

2. To apply for the Arihant Capital National Pension System (NPS), he subscribers should comply with the Know Your Customer (KYC) norms as detailed in the subscriber registration form.

How To Open Arihant Capital National Pension System (NPS) Account?

Individuals can register and obtain a subscription for the Arihant Capital National Pension System (NPS) through the online platform eNPS. Registration for the scheme can be done in the following steps.

Step 1 – Go to the eNPS portal available at the official website of the National Pension System.
Step 2 – Choose your subscriber type from the available options ‘Individual Subscriber’ and ‘Corporate Subscriber’.
Step 3 – Choose your suitable residential status – Citizen of India or NRI.
Step 4 – Opt for either Tier I account type or both accounts as a choice of the former is mandatory for long-term savings.
Step 5 – Enter your PAN details and select Arihant Capital as your PoP. It is ideal to choose a PoP with whom you have an existing relationship as it makes NPS subscription and management easier.
Step 6 – Upload the scanned copy of your PAN card along with a cancelled cheque. The image format should be in .jpg, .jpeg or .png format with a file size of 4KB to 2MB.
Step 7 – Upload your scanned photograph and signature in the same format and size as above.
Step 8 – Once routed to the payment gateway, proceed to pay the required charges via online banking.
Step 9 – With the completion of payment, your Permanent Retirement Account Number (PRAN) will be generated.

Note:
** Once the PRAN is allotted, an applicant needs to proceed with either of the following steps for authentication. E-Sign option for authentication:
** On the E-sign/Print & Courier page, choose the E-sign option.
** Authenticate with OTP sent to the mobile number registered with your Aadhaar card.
** After Aadhaar authentication, the registration form is signed successfully, and you do not need to send its physical copy.

FAQ On Arihant Capital National Pension System (NPS)

Frequently Asked Questions FAQ On Arihant Capital National Pension System (NPS)

Is NPS income taxable?
** Individuals can claim tax benefit under Sec 80 CCD (1) with in the overall ceiling of ₹1.5 lac under Sec 80 CCE. In addition to this, an additional deduction for investment up to ₹50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B).
** This is over and above the deduction of ₹1.5 lakh available under section 80C of Income Tax Act. 1961. However, there is no tax benefit on investment towards Tier II NPS Account.
** Moreover, after the NPS subscriber attains the age of 60, up to 40 percent of the total corpus withdrawn by them in lump sum is exempt from tax.
** However, in case of annuity purchase, while the amount invested in annuity is fully exempt from tax, the annuity income received in the subsequent years will be subject to income tax.

Can I withdraw money from NPS before my retirement?
** If you have invested in Tier-I plan, premature withdrawal is not allowed from the scheme, however for some specific purposes to the extent of 25% of employee contribution, in total three tranches. Partial withdrawals from the NPS are tax-free.
** However, if you close your NPS before retirement, you can withdraw upto 20% of the corpus and remaining 80% will have to be utilized for purchase of annuity.
** Investor in Tier II plan can withdraw money anytime, but it will be taxable at the slab rate.

Does NPS offer guaranteed returns?
NPS is a long-term investment instrument to save for your retirement. It is a market-linked product, which means a portion of money invested in NPS goes towards equities. The returns in NPS schemes are, therefore, volatile, and not guaranteed. However, historically NPS has delivered higher returns compared to other government-initiated tax-saving investments like PPF, in the long-run.