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Arabian Journal of Business and Management Review

ISSN: 2223-5833

Open Access

A Critical Study on National Pension Scheme and Its Applicabilities

Abstract

Varatharajan Pooja*

The National Pension System (NPS) is an intentional characterized commitment pension framework controlled and managed by the Pension Fund Regulatory and Development Authority (PFRDA), made by an Act of the Parliament of India. The NPS began with the choice of the Government of India to stop characterized advantage pensions for every one of its representatives who joined after 1 January 2004. While the scheme was at first intended for government representatives just, it was opened up for all natives of India in 2009. NPS is an endeavor by the administration to make a pensioned society in India. In its general structure NPS is nearer to 401(k) plans of the United States. Today, the NPS is promptly accessible and charge productive under Section 80CCC and Section 80CCD. Under the NPS, an individual can add to his retirement account. Additionally, his manager can add to the welfare and government managed savings of the person. Commitments to NPS get charge exclusions under Section 80C, Section 80CCC and Section 80CCDof the Income Tax Act. Beginning from 2016, an extra tax break of Rs 50,000 under Section 80CCD(1b) is given under NPS, which is over the Rs 1.5 lakh exception of Section 80C. Private Fund supervisors are significant pieces of NPS.NPS is viewed as a standout amongst other expense sparing instruments, after 40% of the corpus was made tax-exempt at the season of development and it is positioned just underneath Equity-connected reserve funds scheme(ELSS). Descriptive research is used and convenience sampling method is used to collect the samples. The sample size is 1559. The statistical tools used here is chi-square test.

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Citations: 3017

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