As the deadline of March 31 approaches for the taxpayers to make last minute investments for the purpose of claiming income tax (I-T) benefits, it is imperative to learn about the investment options. While National Pension System or NPS is an effective retirement savings scheme, it offers additional benefits relating to the income tax exemption, advise financial planners. India Post, which offers nine small savings schemes such as Post Office Savings Account and 5-Year Post Office Recurring Deposit Account (RD) and Senior Citizen Savings Scheme (SCSS), also allows you to open an NPS or National Pension System account. NPS or National Pension System is governed by the PFRDA or Pension Fund Regulatory and Development Authority.
India Post has mentioned few limits applicable to an NPS account (All Citizens Model):
| Finance Cap : | |
| Minimum Initial Contribution with Registration | Rs. 500 (excluding taxes). |
| Minimum Subsequent Contribution | Rs. 500 (excluding taxes). |
| Maximum Contributions | No limit. |
| Minimum Contributions in a Financial Year | Rs.1,000 in Tier I. |
| Minimum transactions in a Financial Year | One. |
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