October 1st Celebrated as NPS Diwas: Unlock a Future of Exciting Opportunities

Aanand Jha | Last updated: 01 October 2024

Save Share

Quick Summary

October 1st is celebrated as NPS Diwas, encouraging citizens to build a pension corpus for a financially independent retirement. The National Pension Scheme (NPS) is a government initiative offering tax benefits, the power of compounding, and regular income post-retirement, with potential annualised returns of 9-12%. It's a flexible, market-linked investment plan suitable for all Indian citizens, offering options for investment management and tax advantages under both old and new tax regimes.

We are celebrating 1st October as NPS Diwas with the aim to encourage every citizen to plan towards creating a pension corpus to secure their and their family future to enjoy financial independence post-retirement. Contributing to NPS gives you tax benefits instantly, the power of compounding, and t

Daily Limit Reached

You have reached your daily limit of 2 Free Articles

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Broadcasts
Daily E-Newsletter
Unlimited Articles Access

BEST VALUE

2 YEAR PLAN

3,499

(Inclusive of GST)

1 YEAR PLAN

1,999

(Inclusive of GST)

View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

FAQ :

NPS Diwas is celebrated on October 1st to encourage citizens to plan and create a pension corpus for financial security and independence after retirement.

NPS is a social security initiative by the Central Government, open to all Indian citizens. It's a long-term, low-risk investment plan designed for retirement, offering higher returns than traditional tax-saving options and providing a regular pension.

Any Indian citizen (resident or non-resident) aged up to 70 years, who complies with KYC norms and is legally competent to contract, can join NPS. Overseas citizens of India (OCI), Persons of Indian Origin (PIOs), and Hindu Undivided Families (HUFs) are not eligible.

Investments in NPS are managed by pension fund managers who invest contributions in a mix of equity, corporate bonds, and government securities. Subscribers can choose between 'auto choice' (managed by the fund manager based on age) or 'active choice' (subscriber decides the asset allocation).

NPS offers instant tax benefits, including deductions up to Rs. 1.5 lakh under Section 80C and Rs. 50,000 under Section 80CCD(1B) for self-contributions. Employer contributions also have tax benefits, and there is no capital gains tax on withdrawal.

Upon reaching retirement age (usually 60), at least 40% of the corpus must be used to purchase an annuity for a regular pension, with the remainder available as a lump sum. If the total corpus is Rs. 5 lakh or less, 100% lump sum withdrawal is possible.