PRESENTATION ON

NPS, SUPER ANNUATION FUND

PRESENTED BY:-
SARTHAK DARJI
DEVANG VALAND
KARAN KAPADIA
 NPS( NATIONAL PENSION SCHEME)
OVERVIEW
• Initiated by Central Government
• Open to Public, Private & unorganized sector excluding armed forces.
• Encourage people to invest in pension account.
• Earlier scheme covered only Central Government employee.
• PFRDA has made it open to Indian citizen
• Most benefit to work in private sector
• Part of the money can withdraw in lumpsum & remaining amount receive as a
regular income after retirement.
 FEATURES & BENEFITS
Returns/Interest:-
• Portion of scheme goes to equity
• Returns are much higher than PPF scheme
• It delivered 8% to 10% returns.
• Option to change fund manager if person not happy with performance.
Risk Assessment
• Currently equity portion is 50% to 75%
• For Government employee portion is 50%
• Equity portion reduced by 50% when investor turns 50 years of age.
Tax efficiency
• Deduction up to 1.5 Lakh for total contribution
80CCD(1):- Covers self contribution
• Maximum deduction 10% of the salary.
• For self employed- 20% of gross income
80CCD(2):- Employer’s NPS contribution
• Not available to self employed taxpayers.
• Eligible deduction (W.E.L) - Actual contribution or 10% of Basic + DA or
Gross Total Income
• Claim self contribution up to 50,000 under 80CCD1(B).
• Total tax deduction up to 2 Lakh
Withdrawal & Exit rules
• Compulsory to investing until 60 years.
• Investing at least 3 years, may withdraw upto 25%
• Withdraw upto 3 times in the entire tenure.
• Restriction impose on tier 1 account not on tier 2 account
• Auto choice- Risk profile as per as per age
• Active choice- Allows to Decide the scheme & split the investments.
 SUPER ANNUATION
• Benefit is fixed irrespective of contribution.
• Pre-determined benefit based on various factors.
• Super Annuation benefit is opposite to defined benefit plan.
• Employer contributes behalf of employee
• Either Manage fund by trusts or buy from insurance companies.
• Employer contributes % of Basic pay + DA(15%)
• Same % of contribution by employee
• Employee may contribute addition amount
• Employee can withdraw 1/3 of fund & balance convert into pension.
• Option to transfer to new employer at time of retirement
Income tax benefits:-
For the employer- Deductible as a business expense
• Income from self manage trust is also exempt.
For the employee- Addition contribution deductible under 80C
• Payment to employee is exempt.
• Withdraw at the time of retirement is taxable.
• Benefit for injury or death is tax free
• Interest is tax free
• Excess Contribution by employer for any employee
• Contribution exceeds 1,50,000, balance taxable
THANK YOU
REFRENCES

• https://cleartax.in/s/nps-national-pension-scheme
• https://economictimes.indiatimes.com/mf/nps-national-pension-scheme
• https://cleartax.in/s/superannuation