New Delhi. In the Corona era, people’s attitude has once again turned more towards financial planning. Financial planning is one of the important tasks of life. The investment strategy of the person should be such that for any small or big work, one does not have to borrow from friends-relatives or take a loan from the bank. Today we are telling you about such a scheme of the government which has given returns up to 60 percent in the last one year. So let’s know about it…
This is National Pension Scheme (NPS)
National Pension Scheme (NPS) is a long-term investment product specially designed for retirement. It is supervised by pension fund regulator PFRDA. Scheme E of the National Pension System (NPS) has benefited the equity market a lot. In the last one year, the government’s pension scheme has given returns of up to 60 percent.
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LIC Pension Fund has given the highest return of 59.56 per cent in Tier-1 account of NPS. After this, ICICI Pru Pension Fund has given 59.47 percent and UTI Retirement Solutions has given 58.91 percent.
Understand the difference between Tier-1 and Tier-2
The minimum annual contribution to keep the NPS Tier-1 account active has been reduced from Rs 6,000 to just Rs 1,000. On retirement, you can take 60 percent of the entire capital in a lump sum tax free. The remaining 40 percent can take lifelong pension from the fund.
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There are many benefits in NPS Tier-2. Since this is an investment account, you can withdraw as per your requirement. However, except for government employees, there is no tax benefit under section 80C of the Income Tax Act on Tier-2 accounts.
Tier I account of NPS has lock-in till 60 years of your age till you extend it, but there is no lock-in period for Tier II account.