SBI customers take note: Want to save taxes? Invest in NPS on onlinesbi.com, avail these benefits
Online SBI: While there are many investment options available in the market, you can invest in the new pension scheme as well if you want to retire rich.
Income Tax return filing deadline is around and it is possible that you may still be figuring out where to invest to save on taxes. While there are many investment options available in the market, you can invest in the new pension scheme as well if you want to retire rich. National Pension System (NPS) is a defined contribution pension system introduced by the Government of India as a part of Pension Sector reforms, with an objective to provide social security to all citizens of India. It is administered and regulated by PFRDA. The SBI has put out details of the NPS on its official Quora page to make the benefits clear to its customers.
NPS has several USPs which makes it different from other pension plans:
1. Tax Benefit available under Tier I Account:
a. Employee Contribution:
i. Tax exemption for investments (10% of Basic & DA) within overall limit of Rs. 1.50 lacs u/s 80C.
ii. Exclusive tax savings provision: Contribution of Rs.50,000 exempted u/s 80CCD(1B).
b. Employer contribution: Deduction upto 10% of salary (Basic + DA) u/s 80CCD (2) without any monetary ceiling
2. Low Cost – A very low-cost product with Fund Management Charges of 0.01%.
3. Superior returns compared to other pension products – Market linked returns.
4. Flexibility of Investments – Subscribers may select a Pension Fund Manager (PFM) of their choice. Subscribers are allowed to change PFM once during a Financial Year. Subscribers may also define their asset allocation, which may be changed twice in a given Financial Year.
5. One-time shift to NPS - Existing corpus under Superannuation / PF can one-time be transferred to NPS without any Tax Incidence
6. Online Access to NPS account – 24 X 7 X 365 (Web & Tele) to CRA
7. Continuation in NPS scheme post-retirement – Provision to contribute till 70years or to differ withdrawal up to the age of 70 years.
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Returns from NPS investment
For a State Bank of India account holder, both registration & contribution functionalities are available at INB platform i.e. www.onlinesbi.com.
1. NPS Registration functionality for Individuals (Resident Indians) is available under e-Services when you log-into your net banking.
2. NPS Contribution & SI (monthly auto debit) functionality is available under Payments/ Transfers.