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Difference in NPS Tier 1 & Tier 2 Features, Tax Benefits, Eligibility.pdf

Here are the Difference in NPS Tier 1 & Tier 2 Features, Tax Benefits, Eligibility. <br>For more info,<br>Visit - www.utipension.com

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Difference in NPS Tier 1 & Tier 2 Features, Tax Benefits, Eligibility.pdf

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  1. Difference in NPS Tier 1 & Tier 2: Features, Tax Benefits and Eligibility

  2. Key Features of NPS Tier 1 Mandatory account for retirement savings. Withdrawal restrictions: Lock-in period until retirement. Minimum contribution of ₹500 per contribution. Partial withdrawal allowed after 3 years for specific purposes (education, medical emergencies, etc.). Invested in government securities, corporate bonds, and equities.

  3. Key Features of NPS Tier 2 Voluntary account with no lock-in period. Functions like a savings account with higher returns. Minimum contribution of ₹1,000. No withdrawal restrictions. Allows flexibility in investment choices similar to Tier 1.

  4. Tax Benefits in Tier 1 vs. Tier 2 Category NPS Tier 1 NPS Tier 2 Up to ₹1.5 lakh under Section 80C No tax deduction available Tax Deduction ₹50,000 under Section 80CCD(1B) Additional Deduction Not applicable Partially taxable, 60% lump sum exempted Gains are taxable as per income tax slab Withdrawal Until retirement, with partial withdrawals No lock-in, withdrawals anytime Lock-in Period

  5. Eligibility Criteria Be an Indian citizen, either resident or non- resident, or an Overseas Citizen of India (OCI). Be between the ages of 18 and 70 as of the application submission date. Comply with Know Your Customer (KYC) norms and submit all required documents.

  6. Summary Summarize that while Tier 1 is ideal for long-term retirement savings with tax benefits, Tier 2 is more flexible, offering liquidity but with fewer tax advantages.

  7. Do you have any questions? Contact Us: contact@utipf.co.in www.utipension.com

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