How to reduce your NPS transaction costs

The National Pension System (NPS) has seen the number of subscribers under the 'All Citizen' model (meant for citizens other than central/ state-government employees) rise to 17.46 lakh as on June 30, 2021, as against 78,774 in March 2014. By the end of June 2021, the total number of subscribers across various models of the NPS reached close to 1.47 crore, with the AUM being more than Rs 5.99 lakh crore. This government-backed long-term investment plan intends to secure the post-retirement years of its subscribers by helping them accumulate a corpus. Also, it helps subscribers get an additional deduction of up to Rs 50,000 over and above the Section 80C limit of Rs 1.5 lakh. While you can enjoy tax benefit on the investments made in the NPS during the accumulation phase, at the age of 60, you can make a tax-free withdrawal of the 60 per cent of the corpus. The remaining 40 per cent has to be utilised for buying an annuity plan, which gets you regular income during your golden years. You can open an NPS account either through a point of presence (POP) or directly through the Central Record Keeping Agency (CRA). Let us first

This article was originally published on October 15, 2021.