NPS,PPF AND SUKNYA SAMRUDHI YOJNA RELATED NEWS REPORT
The NPS or also known as National Pension Scheme is managed by the PFRDA or the Pension Fund Regulatory and development authority. It is a pension scheme which helps the retiree to fulfill different retirement needs. It is the cheapest retirement plan that is available in the Indian subcontinent. The National Pension System was first introduced in the year 2004. The major aim of the NPS has always been to instill the habit of savings for the retirement phase among senior citizens of the country.National Pension Scheme is of two different types – Tier I and Tier II. These two accounts are completely different and here is some important information about these.
Tier I account – this is the basic NPS account which has limited withdrawals and here the two types of withdrawals that can be considered.
When the contributor reaches the age of 60 years he/she will be able to withdraw only 20% of the overall contribution they have made. While the rest 80% has been used for purchasing the annuity from the life insurer.
The candidate can also withdraw 60% of their contributed sum whereas the remaining 40% will be used to purchase the annuity from a life insurer.
Tier II account – the tier II account is a voluntary saving choice for the people who want to withdraw their money without any limit. However, a person may choose to open a Tier II account alongside the Tier I account.
Public Provident Fund commonly called the PPF scheme, is a long-term investment instrument. The scheme was started by the National Savings Organization (NSO) in order to encourage small savings and investments. PPF offers decent returns along with income tax benefits under Section 80C of the Income Tax Act.
Only an Indian resident can open a PPF account. One person can only have one active PPF account at a time. PPF account for minors can be opened based on legal age proof. PPF is a long-term investment instrument and so the maturity term is 15 years.
Some of the key Indian Banks like SBI, ICICI Bank, Axis Bank, HDFC Bank, Central Bank of India, Bank of India (BOI), IDBI, Central Bank of India, Punjab National Bank, Indian Overseas Bank offer PPF account facility. Several other banks also provide PPF service.
1. PPF Account opening form which can be obtained from the bank branch or the Indian Post portal.
2. Valid ID proof like PAN card, driving license, voter ID card, passport and Aadhaar card.
3. If you applying online to open the PPF account, you will need address proof like telephone bill, electricity bill, ration card and Aadhaar card.
4. Two recent passport size photographs will be required as well.
5. A Pay-in-slip at the bank branch to transfer the amount to your PPF account, or a signed cheque in favour of your PPF account.
6. In case of PPF account for a minor, birth certificate may be required as age proof.
PPF interest rate is set by the central government. The interest is calculated annually. Since PPF falls under the EEE (Exempt, Exempt, Exempt) tax category, it means that PPF contribution, interest earned and maturity proceeds are eligible for tax exemption completely. One can claim tax benefits for investment up to Rs 1.5 lakh per year.
Sukanya Samriddhi” means prosperity of the girl child. The scheme was created with the aim of encouraging parents and guardians of girl children below the age of 10 years to begin saving money so that they may have a solid financial footing to continue with higher education, pursue entrepreneurial dreams or even marry the girl off.
Under this scheme, every girl below the age of ten years is made eligible for a special savings account with higher than normal interest rate and several other concessions. The account receives deposits for 14 years and matures at 21 years since the opening of the account.
1. Who Can Open the Account?
Either of the girl’s parents or a legal guardian of a girl child, may open the account, provided the girl is less than 10 years old. Accounts can be opened for only 2 girl children per guardian/family. An exception is made in the case of twins and triplets.
2. What is the Eligibility Criteria?
The scheme is only for girls.
The girl for whom the account is being created should be below 10 years of age.
The girl should be an Indian citizen, residing in India.
3. Required Documents
Birth Certificate of the girl child
Address Proof
Photo Identity Proof
4. Residence
It is stipulated that the girl child availing the benefits of the scheme should be a resident of India throughout the duration of the scheme.
5. The Account in the Name of the Beneficiary
Only the girl child is meant to be the beneficiary of Sukanya Samriddhi Account (SSA), although the guardian is making the deposits. In the unfortunate case of premature death of the child, the guardian can claim for the balance amount and accrued interest since the day of the opening of the account.
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