Top 5 NPS changes that you must know about | Get more out of your NPS
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- čas přidán 14. 06. 2024
- The National Pension System (NPS) has emerged as a popular investment option. It has many attractive features like low costs, tax benefits and a wide range of investment options. Not just these, there have been regular changes in it over the years which have made it better. In this video, we discuss 5 such changes.
You can watch the video to find out what these changes are. Apart from these, we have also mentioned 10 other noteworthy changes. Knowing about these changes will help you get more out of the NPS.
Additional resources:
Video on the basics of the NPS: • NPS guide | Aapka NPS ...
D-remit registration process: npscra.nsdl.co.in/download/pd...
Video on the best NPS managers: • NPS Fund Managers with...
Video on tax-saving in FY24: • Ultimate tax saving gu...
Chapters
00:00 Introduction
01:31 Change 1
02:49 Change 2
04:39 Change 3
07:28 Change 4
08:54 Change 5
10:25 Other noteworthy changes
12:29 Conclusion
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Excellent presentation for NPS till date 🎉🎉 Kudos to the ET team!!
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The Irony :
People stopped PPF contributions bcoz of 15 year lock in period.
And now they have started NPS contributions JUST to save tax, but they get lock in period of 30 to 35 years, depending on age.
Every investment vehicle has a purpose. NPS or even PPF from the earlier years are meant for retirement. So the amount one invests should be the amount that they intend to withdraw at retirement or during any emergency. If you intend to withdraw or book profits from your investments more regularly, there are other investment options.
I stopped PPF 3-4 years ago after they stopped increasing interest based on inflation, not coz of lock-in
@@gustavofring111 where do you invest now
Lockin is 7 yrs
But asset class is different. NPS allows 75% equity allocation, and equity has historically given much better returns than PPF over the long term
Its too simple to understand thanks for the explaination
Excellent video with clear explanation 👏
Hello, thanks for your kind words. Please help spread the message by sharing this video with your friends and family.
Only change I am expecting from NPS is to make cut-off time 9:30 to 2 PM like it is for mutual funds. In that way we can get benefit of dips.
पता नही कब होगा
LoL.
Unless you invest in crores, dips in nav don't matter.
@@omprakashbaruah9425 I know, it wont make a big difference but if it can be done in MF why not in NPS.
Very nicely explained 👍 enjoyed watching and got updated.
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Good insights about NPS. best Tax saving option
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Thank you for such an informative video team. Can you please provide reference to Point 5 in "Other noteworthy changes" ? It would be of much help. Thank you!
Thankyou for sharing. Very helpful
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I activated my virtual id after watching this video's, thank you ET Money team
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Excellent ! Tax free SLW withdrawals are just like hassle free monthly pension
but that is not a good choice as your money will not grow. atleast put them in a FD you ill et 7% return on it
@@jishnu18 It should grow as I think it will stay invested, similar to SWP in mutual funds
@@jishnu18 i think it will work like SWP of mutual funds with additional tax free nature
@@abhishekpurwar9932 it will only be on minimal returns
Who will buy then Anil Ambani junk Reliance Annuity
Good work by ET money team and excellent presentation 👌
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Thanks for very useful information Sir 👍
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The intro music reminds me of Turning Point on Doordarshan. Great video, btw.
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Considering inflation the amount that we get per month will be peanuts, it better to invest same amount in a small cap funds and "Not touching it till rerirement!" and can start SWP when we want to retire.
Thank for updated
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Very well explained sir ❤
If you could please explain only Corporate NPS in details with calculations that will be great 😊
Thanks
Great video, keep it up
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Please make a video with examples of SLW system and the transaction charges one has to bear alongwith tax benefits.
Great video.
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Very informative
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How I can transfer my existing NPS from cams to proton ?
Useful information
Please make a video about NPS tier 1 and Tier 2 account amount withdrawal charges and also about annual maintenance charges of NPS Account and also make a proper withdrawal video about NPS Tier 2 Account.
Hi, I have an existing NPS account. Can that I can manage from ETMoney App?
Thanks
Good info thanks
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Good video, could you please cover more details on the alternative investment in NPS, how to opt for it and the benefits of it
Hello, thanks for your suggestion. Will share it with the content team.
Can a public sector bank employee choose the following things in nps or whether its fixed for them:
1. The fund manager for each asset class
2. The asset allocation (equity and debt)
Thanks for making video on NPS.
Is it possible to
1.change invest from Auto to active in NPS?
2. Chage fund manger in equity ?
Brother Superb...Want to Know if I change the Ratio of Equity (currently 50%), corporate debt, government bond and AIF...from LC50 - Moderate Life Cycle Fund to Maximum Equity 75% . how it will happen and what will be effect it will be from Current Period or changes will be from earlier investment also
What are the entire charges of NPS.kindly brief about the charges.
Annuity should be made optional. And annuity investors should be provided higher rate of interest. Gov shouldn't make it mandatory unless there are any additional benefits.
Nailed it. Exactly how I always felt about this worthless NPS 'scheme' Govt rammed down the throat of its employees. It does not have liquidity, options, return, security or even inflation-proof pension for that matter. It stands no chance in financial market other than helpless employees forcefully contributing to bloat the gains of a few scamster annuity providers.
P in NPS stands for pension
@@AdmiringIntrovert NPS is a pension scheme only for name sake.
If annuity is made optional then the expense ratio of nps will be high. By annuity only these fund houses make profit
@@jishnu18 reasonable expense ratio is better than mandatory annuity. Currently NPS schemes are anyway managed like passive funds
Gr8 presentation
Thanks a lot for the info..
I have subscribed to NPS and regularly investing in it for the past 3 years via ETMoney itself...could you please tell me if ETMoney has option to select multiple fund managers for each category as well or it has to be done from NPS website or so?
Also, the SLW option seemed interesting - can we opt for it via ETMoney at the moment??
I have done that in NPS site, selected different Fund manager for different categories.
Have the same question, and also is it better to do nps myself via ETmoney or in other words, benefits of applying for additional nps that my employer is offering with hdfc??
@@stillwatersnightsky6533 it is same in all platforms, there are no differences, you can select any fund manager from any platforms.
After introduction of SLW, what the need of Annuity? Hope 100% withdraws can be possible via SLW soon.
Annuity is to pass your wealth to your next generation, so that you would remain in their happy memories..
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Good video. Can you also touch upon the difference between employee and employer contribution of nps. There is no clear clarity on the tax saving and premature withdrawal part for both
@@eprabhat Thanks. And on the tax front from investment perspective. Is 10% of basic salary exempted from taxation for employee contribution. However big it is. For example, if my 10% of basic is 2.5 lakhs. I will get a tax exemption of 1.5 L(80c) + 50k(80ccd1) + 2.5L(80ccd2 - employer contribution). Even my CA is saying the total limit will be just 1.5L. So, I am confused.
@@balajiradhakrishnan3400you will get the tax benefit of 1.5L+50k+2.5L So total it would be 4.5L. I am claiming the same benefit for past 2 years now.
@@balajiradhakrishnan3400employee contribution exemption 1.5L(80C)+ 50k(80CCD1B). Employer contribution is fully exempt.
@balajiradhakrishnan3400 even I am stuck with same confusion ? If you get better understanding pls do share. Thanks.
Hi, there are 3 tax benefits in NPS which a Corporate Subscriber can get. Who is a corporate subscriber? Answer is a nps subscriber who shift or join NPS to their company/corporate account so that 10% od their basic salary is invested to nps account on monthly basis.
3 tax benefits are -
a) u/s 80 C - Limit is 1.5 lacs, mostly it gets fulfilled with employee pf, insurance etc.
b) u/s 80 C 1 B - this sec is exclusively for nps, limit is 50k.
Now both 80c & 80c1b are for individual contribution, it means contribution towards NPS account from your own bank account.
c) u/s 80 C 2D - here in this sec your contribution of 10% of (basic+DA) salary through your employer is tax exempted. Limit for this is 7.5 lacs which includes employer PF, employer NPS & superannuation fund.
Corporate subscriber can get benefits of all 3 tax benefits in old tax regime.
And only of 80C2D - 10% of Basic+DA salary in New Tax Regime.
You can connect with me on WhatsApp for more info on NPS by using this link - wa.link/sp7rjh
Informative 👏
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Can I withdraw the full amount that is less than 3 Lakhs before retirement from NPS tier-1?
Please could you do a video on partial withdrawal in NPS with complete procedure...
Hello, thanks for your suggestion. Will share it with the content team.
Good video. But can you explain what happens to the annuity after the death of the subscriber. It goes to the nominee as a monthly pension or lump sum given?
For spouse monthly pension
For kids lump sump return
When I opened my nps account last month, it wasn't giving the option to choose different fund managers for the different categories as E, C and G.... Had to choose one fund manager for all
Plz tell can state govt employee opt or change to active investment strategy?Last time i tried to change they said its not available for state govt. Employees
Does the SLW comes with the deferred annuity option (till the SLW is over)? Or should the annuity payouts start immediately while withdrawing?
Annuity payouts start immediately (it can't be deferred) after purchasing the annuity plan with 40% of corpus. SLW can go simultaneously along with annuity.
@@kavishwarmokal124 ok, so it means even purchasing should happen immediately at the beginning of SLW not at the end of SLW.
How can employees changes the fund allocation, as it is locked in the system.
It's a nice video...but please make a video on taxation of withdrawal from NPS Tier 2...if someone withdrawal money from Tier 2...how it will be taxed ? Will it be as per income tax slab or it will be capital gain tax..please enlight on this area..
It is not clear but people consider it as ltcgt
How are gains from Tier 2 NPS taxed during redemption?? Is it taxed like an equity fund (10%) or like the old dept fund (20%) with indexation benefit or as per income tax slab??
I think nothing is clear on that and hence you must.presume it is taxed as long term.debt
@@anuragbansal4750 you mean like old dept fund (with indexation)
Hello, there is limited clarity on the taxation of the Tier II account. One practice is to tax the gains as per the applicable slab. Please consult a tax advisor for more information.
Nice video with all necessary advancements explained.
NPS seems to be the best Govt backed avenue today and in future with many such favorable advancements in the pipeline. Also helpful in tax savings for salaried individuals.
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What if one has APY and NPS both. how there both things work. please assist.
My mother started NPS at the age of 61 and she did it through SBI bank and the people working there made the deposits in schemes related to SBI funds i believe but the returns are very low ..idk much about NPS can someone tell me how to change the fund deposit options
Please make comparision video of NPS ,PPF & KVP.
Hello, thanks for your suggestion. Will share it with the content team.
What changes in et money after new sebi guidelines of this type of application like et money
What is best for govt employees????
Make a video on these issues.
Hello, thanks for your suggestion. Will share it with the content team.
Good information
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What abt govt Employee
Can he change to equity majority scheme within nps
Please reply
Is it possible to have different fund managers for auto choice?
Hello, no, it's available only for the active choice.
Govt employees are still not given Active choice. Even the Passive (aggressive) is not available. Only passive (moderate) & passive (conservative) are available
But for govt employees some money is also invested by govt which is not the case with private job employees.
Because. If we lose money .we blame govt..
@@amitmahey3706 that’s because after retirement no pension will be given. This is why govt makes contribution.
@@ketavatkirankumar fair enough. This can be made optional. One who wants to take risk and generate higher return can’t do so at this moment as the option is not available.
@@ziko640 instead what should they do is what ever investment we do upto 15% income and nps as in old tax system should be tax free at the time of investment.. that's enough no need of rebate and standard deduction..and no tax till 8 lakhs . because EWS is given under 8l
I have both tier1, tier2 account recently I have changed the scheme of the both tier1,tier2 after that nps tier2 not showing any of the details can you please help me why it happened?
Plz make a vedio how can we change allocation % in NPS TIER 1
plz make a seperate video for goverment employees . we have standard option instead of active n auto ? can you elaborate that? also why cant we allot 75% in equity ? is there capping of 50% for gov employees?
Yes, govt employees can contribute either in lc50 or lc 25 only
Hello, thanks for your suggestion. Will share it with the content team.
Please do a separate video of nps for government employees as we are not having a choice to change our equity allocation
you can change as per your choice. I think two times a year change is allowed. I have changed it to HDFC on my own
Hello, thanks for your suggestion. Will share it with the content team.
@@chandankumarr Central government employee equity 75% possible????
@@gokulrock1526sorry. I have no idea about that
Please tell me how to change allocation of equity for government employees
# ET money.. we are state govt employee and contributing through CPS. In this context does we have any chance the government allocated funds to as we desired for better returns.. if yes pl reply the process
The SLWP for the 60% of the corpus is tax free right?? (Bec the same 60% if taken as lumpsum is tax free)
Hello, yes, it is.
@@ETMONEY cool 😎
SIR, I AM WORKING IN NAVY SINCE 1999 I AM ELIGIBLE FOR FOR OLD PENSION SCHEME, BUT NOW I WANT TO INVEST IN NPS TIER1 FOR GETTING TAX BENIFICIAL, MY QUESTION IS CAN I GET NPS PENSION AFTER COMPLETION OF MY AGE 60 YRS ALONG WITH MY EXISTING OLD PENSION. PLS CLARIFY MY DOUBT .
Cannot withdraw till 60 years of age, 40% for annuity, no guarantee for return.
If I can’t use the money when and how I want to use it then whose money is it?
I’ll pay tax but I want control.
Nps se withdrawal lengthy and time consuming process h ?
Even though Marathi is my mother tongue, after watching this I got to know the pronunciation difference between the words. I never observed it before.😅
Sir if the applicant died,with in 60 years what are the benefits for nominee.please enlighten.
How a state government employee can change in NPS fund manager and change in fund allocation between Equity, Bonds, Securities & AIF? Please provide any link or vedio for thar procedure.
App hoga na usme jake change karo
How to change exposure to all equity
Sir it's my humble request plzzz make video on how can a government employees maximize it's nps returns?
The fees/charges in NPS are not very clear. Though this is a low-cost fund management option, I see there are a lot of deductions whenever we contribute monthly to this fund. How that is getting effected on the final contribution. Can you make a video about the cost of NPS?
So many charges indeed. Very sad
Contribute through the NPS trust website only, if you use ET money, paytm or any bank , you have to pay the intermidatory charges. One more thing, it is better to use your time to solve problem instead of commenting. I did it for ur benefit
If you check the whole amount deducted for a year it is not more than ₹300. It's ok for that cost
@@shivkumarb150 I'm not sure about it. In most of the cases the deduction is not in terms of money but cancellation of units which makes it hard to understand how much money has been deducted
What are the NPS trust websites with minimal charges.
NPS Should cover some life risk coverage also, since it is long time investment
What do you mean by life risk? is it unfortunate event of untimely death?
Then life insurance is there to take care of this aspect.
It's different for Govt Employees. For example we can't change share of Equity. We are put in default choice only. Further we can't change fund manager too. Please make a dedicated video on NPS for govt employees.
Govt employees can also choose fund manager and scheme.
@@madhurralhan5941 not in J&K
Hello, thanks for your suggestion. Will share it with the content team.
Can I withdraw money for buying New home I am upgrading from old buy selling old one.
How withdrawal is gonna work for people who are 60+ yrs old when they signed up for NPS?
Can I invest in NPS from my personal account for my father NPS? Kindly help
The active voice for nps was strated way before 2022 as told in the video
Is age 38 late to invest in NPS.? is it a good choice.?
Is the EEE nature of NPS applicable to investments in the Tier-II account as well?
No
Hello, no, tier II investments are taxable.
My mother (widow at 45yrs) got some lumpsum money from my father's service in 2020. Due to lack of proper information, she invested Rs 15 lakh in one go in NPS with 25% E, 55% G and 20% C. However the XIRR has been very low approx 7% in the past 3 years.. What should be done now to increase returns?
Log into her nps account and decide what ecg percent allocation you want and make the required changes
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Also explain in case of government employees
I can contribute 10% 12% or 14% of basic salary plus DA
You can invest as much you want to invest with minimum limit of 10% of basic plus DA. But govt will only contribute 14% of your basis plus DA.
Can a govt employee choose active choice????
Answer me please!!
Govt employees er maximum equity allocation 50% er beshi kora jay na
SLW period also comes with tax EEE?
Hello, yes, there is no tax on withdrawing through SLW.
Can we start SWP at the age of 50 ??
Can government employees invest 75% in equity
Can NRIs withdraw and close the NPS account?
If someone became NRI, then what happens to NPS, can NRIs continues to get the returns ?
When we will get Annuity Amount
i am working in Kendriya vidyalaya Sangathan, under ministry of Education and my NPS is auto but i want active option so that i can select 75% equity option for better returns but NPS team told i can't change from auto to active as KVS does not allow then how can I change my NPS from auto to active??? please help
Hello, since it's government NPS, you can't make the change. The active choice is available in the all-citizens model of the NPS.
Why R they making it clear while withdrawing the fund
In NPS Tier 2 we have to buy 40% annuity like NPS Tier 1 Account?
Hello, no there is no such requirement. You can withdraw the corpus anytime.
Pls confirm the taxation on maturity of nps Tier 2 capital gains.
Is it taxfree as in Tier 1
Hello, there is limited clarity on the taxation of the Tier II account. One practice is to tax the gains as per the applicable slab. Please consult a tax advisor for more information.
Government employees should be given all the facilities available for corporate..like different fund manager to different assets
How to enable tier 2
For manual asset allocation in Equity portion is the current should be less than 75% or monthly allocation from investment should be less than 75%?
Because if the allocation in general is less than 75%, then that changes, rather increases gradually and we need to do asset allocation periodically. Please clarify this.
Gold investment should also be included in NPS
I am State Government employee with NPS, my account is showing Tier-I, Scheme preference is showing as Default Scheme Set-up, with equal allocation in SBI Pension Fund Scheme, UTI Retirement Solutions Pension Funds Scheme, LIC Pension Fund Scheme, the contribution is compulsorily deducted from my monthly salary and credited to NPS. As per NPS rules can i select the choice of Scheme or different funds other than mentioned above. Please reply and what is the procedure as i am not that familiar with NPS.
Pls helpe also in these