Think and Plan your future with NPS – Digitally

“The biggest part of our digital transformation is changing the way we think.” 

Simeon Preston

You used to hear a phrase, ‘The world is shrinking’, which is metaphorically true, thanks to digitalization. Everything is at our fingertips; you just need to tap, and it is done. In today’s fast-paced world, one thing that is done regularly is planning. People start planning their future; they care more about their savings, investments, and expenses. They look for different options in funds and investment programs to grow their wealth, and even youngsters start planning for their retirement, which is eventually a good thing.

So, how would you perceive this fact? Do you also like to plan and create a corpus for your retirement? If the answer is ‘yes’, then this blog is for you!

You must have heard or read about the National Pension System online. But you don’t know where to start or how to apply for it. Let’s understand the procedure.

How to apply for a National Pension System account online

While applying for an NPS account online, or eNPS, there is a similar pattern. Either you visit NPS to register online and link your mobile number, Aadhaar, and Permanent Account Number (PAN) with your NPS account.

Secondly, you can also visit KFin Technologies website to enroll for an NPS online account. Let’s understand this one by one:

Step 1: Visit https://www.nps.kfintech.com/

Step 2: Click on ‘Join NPS’.

Step 3: You will be redirected to a new page.

Step 5: Enter the following details:

• Your full name
• Your date of birth
• Mobile number
• Your PAN number
• Email ID
• Application type
• Resident type
• Accept the terms and conditions
• Click on ‘Create an account, and you will be redirected to the NPS page

NPS comes with many benefits; let’s have a look at its features briefly.

Features

• 40% of the NPS corpus is tax-free at maturity, while the remaining 60% is taxed
• An annuity purchase is made with tax-free money
• If you take out 40% of your corpus and put the other 60% into an annuity, there won’t be any taxes due on the remaining 20%
• At least 40% of the corpus must be used to purchase an annuity
• Withdrawals made in one lump sum are taxed
• Section 80(C) of the Income Tax Act has increased the annual total tax exemption for NPS from ₹1.5 lakh to ₹2 lakh
• The tax treatment of the annuity pension will depend on the tax bracket of the account holder

Conclusion

As we live in a digital era, it is always good to proactively strategize for the future. When it is easy, hassle-free, and reliable, then we should not shy away from creating a corpus for our future.