The number of subscribers joining the two major pension schemes run by the Pension Fund Regulatory and Development Authority (PFRDA) grew 22 per cent year-on-year to over 5.07 crore by the end of February.
PFRDA said in a statement on Thursday that the number of subscribers covered in various schemes operated under the National Pension System (NPS) increased to 5 crore 7.23 lakh by the end of February, 2022.
According to PFRDA, at the end of February, 2021 this number was 4 crore 14.70 lakh. In this way, the number of people involved in pension schemes has increased by 22.31 percent as compared to a year ago.
The total assets under management under NPS and Atal Pension Yojana (APY) also increased by 28.21 per cent to Rs 7,17,467 crore.
22.75 lakh employees of the center are included in NPS
According to the pension regulator, the number of central government employees included in the NPS increased by about five percent to 22.75 lakh by the end of February. At the same time, the number of employees of state governments has increased by 9.22 percent to 55.44 lakh.
If we talk about the corporate world, the number of employees joining NPS has increased by 25 percent to 13.80 lakhs by the end of February, 2022. With this, the number of people registered under Atal Pension Yojana increased by 29 percent to 3.52 crore by the end of February.
What is Atal Pension Scheme
The age to invest under Atal Pension Scheme ie APS is 18 to 42 years. Under this scheme, you can take a pension of 1 to 5 thousand rupees on a monthly basis. You can also start with Rs 42 for pension. Starting with this modest amount at the age of 18, one can arrange a pension of Rs 1000 in old age.
For example, suppose you are 18 years old and you want a pension of Rs 5000 per month after 60 years, then you have to pay Rs 210 per month. The investment amount will increase with age. Apart from this, tax exemption can be taken under 80C.
Also Features: On the death of the investor, the lifelong pension amount is guaranteed to the spouse and finally, in the event of the death of both the subscriber and the spouse, the entire pension amount is paid to the nominee .
What are the benefits of NPS
The National Pension System or NPS scheme is a combination of both equity and debt, where the investor can choose to have equity exposure of up to 75 per cent on his investment. Section 80C of the Income Tax Act allows income tax exemption on investments up to Rs 1.50 lakh in NPS.
Additional income tax exemption under section 80CCD is available in NPS. Under section 80CCD, a taxpayer can claim tax benefits up to ₹50,000 invested in his NPS account in a financial year. An NPS account holder can claim income tax benefits on investments up to ₹2 lakh in a single financial year.
Minimum amount to deposit: For Tier-I NPS account holders, it is mandatory to contribute a minimum of Rs 1,000 in a financial year, as per the extant rules. Only then the account will be active. .
If the minimum contribution is not made in the NPS Tier-I account, the account will become inactive and then you will have to pay a penalty of Rs.100. If one also has Tier II NPS account (where lock-in of funds is not required) then the Tier-II account will be automatically closed along with the freezing of Tier-I account.
