GENERAL KNOWLEDGE

Detailed explanation-1: -An Act to provide for the establishment of an Authority to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.

Detailed explanation-2: -After retirement, the subscribers can take out a certain percentage of the corpus. As an NPS account holder, you will receive the remaining amount as a monthly pension post your retirement. Earlier, the NPS scheme covered only Central Government employees.

Detailed explanation-3: -NPS exit rule If the total corpus is less than or equal to Rs 5 lakh, the subscriber will have an option of complete lump sum withdrawal at maturity. For premature exit before the age of 60, an NPS subscriber needs to use 80 per cent of the total NPS corpus to buy a pension plan (annuity) from a life insurance company.

Detailed explanation-4: -Exclusive Tax Benefit to all NPS Subscribers u/s 80CCD (1B) An additional deduction for investment up to Rs. 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 Rs. 1.5 lakh available under section 80C of Income Tax Act. 1961.