Annuity Partial 2015: Fill & Download for Free

The National Pension System (NPS) is retirement investment product based on voluntary defined contribution system. NPS enables its Subscribers to make systematic savings through their working life and create a good corpus for a comfortable retirement.NPS is a regulated and technology driven retirement savings scheme with exclusive tax benefits, low cost structure and good returns. You can read more about the benefits of NPS and how it is a preferred investment vehicle for a secured future from answers on our Quora Profile.Any individual between the age of 18 to 65 years can invest in NPS.Withdrawal from NPS:In NPS, as per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, exit under NPS happens after retirement or exit after the age of 60, pre-mature exit (resignation/ VRS/exit before the age of 60) or or in case of unfortunate death of the Subscriber.In addition, Subscriber also has the option of Conditional Partial Withdrawal; wherein a Subscriber can withdraw 25% of the self-contributions on certain specified reasons such as Higher education of children, marriage of children, for the purchase/construction of residential house or for treatment of Critical illnesses etc. However, in order to be eligible for Partial Withdrawal, the Subscriber must have completed at least 3 years in NPS. Moreover, withdrawal can happen maximum of three times during the entire tenure of subscription.Withdrawal requests can be raised online or through your associated POP - SP.To answer you question - Yes, your mother can join the National Pension System (NPS) and continue to invest in NPS till the age of 65 years. She can even remain invested in NPS till the age of 70 years.In all the annuity plans available under NPS, Subscriber can get pension till he / she is alive. Options of Pension being extended to the spouse and subsequent return of Principal amount are also available. However, pension amount will differ based on the scheme you choose. The annuity schemes available under NPS as follows:1. Annuity for life – On death of the annuitant, payment of annuity ceases2. Annuity for life with return of purchase price on death of the Annuitant - On death of the annuitant, payment of Annuity ceases and the purchase price is returned to the nominee3. Annuity payable for life with 100% annuity payable to spouse on death of Annuitant - On death of the annuitant, Annuity is paid to the spouse during life time. If the spouse predeceases the annuitant, payment of Annuity will cease after the death of the annuitant4. Annuity for life with a provision for 100% of the annuity payable to the spouse (of the Annuitant) for life on death of the Annuitant, with return of purchase price on the death of last survivorRegards,NSDL e-Governance Infrastructure Limited(CRA for National Pension System)

Employee’s Provident Fund (EPF) vs National / New Pension Scheme (NPS) Employees that are currently covered under the EPF scheme have the option to shift to the NPS scheme and make use of the attractive tax benefits and savings that apply under NPS.National / New Pension Scheme (NPS)Employee’s Provident Fund (EPF)1.Investment of contributions:Two investment modes available: Active choice mode and Auto investment mode.Active choice mode investors get up to 50% exposure to equity, with the remaining being invested in medium or low return fixed income instruments.Auto choice mode calculates asset allocation based on the age of the contributor.NPS contributions from government employees in the Tier 1 account has only 15% exposure to equity.Investment of contributions:EPF contributions are invested in Central and State Government Securities.Investments are also made in bonds and deposits of PSUs.Pension of the contributor is independent of market conditions.Compounding annual interest on EPF deposits will be paid to contributors even in the case of flexible returns for bonds and securities.2.Rate of returns:NPS returns vary based on the market conditions for stocks and bonds.NPS returns also vary depending on the ratio of investment options and exposure to equity, medium fixed income securities and low fixed income securities.Average returns for NPS investment of 85% in fixed income securities, and 15% in equities is:2012 – 2013: 9.76%2013 – 2014: 5.37%2014 – December 2015: 19.63%From the launch of the NPS scheme: 10.35%Rate of returns:The average EPF rate of returns is between 8.00% - 8.50% p.a.3. Liquidity and withdrawals:Funds cannot be withdrawn until the contributor attains the age of 60.Partial withdrawal is allowed in case the contributor invests 80% of the NPS wealth in an annuity scheme.Withdrawals made after the age of 60 require 40% to be invested in annuity.Liquidity and withdrawals:Withdrawals allowed under certain circumstances.Up to 6 times the member’s salary can be withdrawn for medical treatment.Up to 36 times the member’s salary can be withdrawn for repayment of a house loan.Up to 24 times the member’s salary can be withdrawn for purchase of a site or plot of land.Up to 12 times the member’s salary can be withdrawn to repair and remodel his / her home.Up to 50% of the contributions made can be withdrawn up to 3 times for marriage or education.4.Income Tax benefits and deductions:All funds except those invested in annuities are taxable at prevailing rates.Contributions of up to Rs.2,00,000 are deductible from taxation under Section 80C and Section 80CCD(1B).Other investments and savings like LIC Premiums, ELSS, post office savings etc. will have to share the Rs.1,50,000 provision under Section 80C and Section 80CCD(1).Hence, there is only an effective amount of Rs.50,000 that can be claimed as a separate deduction under Section 80CCD(1B) under NPS.Budget 2015 deductions (of Rs.50,000) as announced basically are only beneficial to NPS Tier 1 investors under Section 80CCD(1B).Income Tax benefits and deductions:Contributions made are tax-free under Section 80C.Interest earned and withdrawals are not taxed.No additional benefits apart from 80C deductions.Switching your EPF contribution into an NPS scheme is basically trading in an investment with assured returns, for investments with varying exposure and returns (but you also get an additional tax exemption with NPS)Credits : Google

As per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, in following conditions Subscriber can exit from NPS:Upon Superannuation - When a subscriber reaches the age of Superannuation/attaining 60 years of age, he or she will have to use at least 40% of accumulated pension corpus to purchase an annuity that would provide a regularmonthly pension. The remaining funds can be withdrawn as lump sum.If the total accumulated pension corpus is less than or equal to Rs. 2 lakh, Subscriber can optfor 100% lumpsum withdrawal.Pre-mature Exit - In case of pre-mature exit (exit before attaining the age of superannuation/attaining 60 years of age) from NPS, at least 80% of the accumulated pension corpus of the Subscriber has to be utilized for purchase of an Annuity that would provide a regularmonthly pension.The remaining funds can be withdrawn as lump sum.However, you can exit from NPS only after completion of 10 years.If the total corpus is less than or equal to Rs. 1 lakh, Subscriber can optfor 100% lumpsum withdrawal.Upon Death of Subscriber - The entire accumulated pension corpus (100%) would be paid to the nominee/legal heir of the subscriber.NPS Subscriber can also withdraw certain amount out of his own contribution. It is considered as partial withdrawal.Following are the conditions of Conditional Withdrawal:Subscriber should be in NPS atleast for 3 yearsWithdrawal amount will not exceed 25% of the contributions made by the SubscriberWithdrawal can happen maximum of three times during the entire tenure of subscription.Withdrawal is allowed only against the specified reasons, for example;Higher education of childrenMarriage of childrenFor the purchase/construction of residential house (in specified conditions)For treatment of Critical illnesses