Why is NPS the Best Retirement Planning: Most investors are interested in investing their savings in schemes where they can get maximum tax exemption benefits. They often invest in schemes to meet small or medium-term financial goals such as home buying, children's education, marriage, health and life insurance. These investors do not take much interest in retirement planning. Despite the availability of all government pension schemes like EPF, and PPF, very few people invest in the National Pension Scheme ie the NPS scheme for retirement planning. Some people who invest try this type of government tax saving scheme just to take advantage of tax exemption of up to Rs 1.5 lakh or more under income tax sections.

If you are wealthy or have enough money to invest, then you can consider improving your investment portfolio. To improve the portfolio, you can give more importance to investing in schemes like retirement planning. The main objective of any retirement plan is to maintain sufficient cash flow to meet day-to-day needs after the age of 60 years. After retirement, the second innings of life begin. In such a situation, you must have enough money to survive. When this happens, you do not need to compromise your lifestyle.

What is NPS
The National Pension System ie the NPS scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the Ministry of Finance, Government of India. For investors doing retirement planning, it can prove to be better than the NPS scheme in the country. Any citizen of the country between the age of 18 to 70 years can open an NPS account through the Point of Presence (POP) centre. Both online and offline services are available for opening an account. After opening an NPS account, a 12-digit unique Permanent Retirement Account Number (PRAN) is issued to the subscriber. With the help of the PRAN account number issued by PFRDA, NPS subscribers can easily operate their accounts.

Benefits of NPS account
An investor can invest in the NPS scheme according to his investment capacity. The NPS scheme is market linked. That means this scheme is affected by the ups and downs of the market. In this scheme, NPS subscribers get the benefit of better returns, fund security and tax exemption. Let us take a look at the benefits of NPS.

Tax exemption on the portion deducted from the salary
The tax exemption available on the NPS scheme makes it at par with EEE. In this, the investor gets double the benefit in raising corpus funds. In fact, in the NPS scheme for corpus growth, the investor invests some part of his salary, and some part from the company as well. Tax exemption is available on the portion invested by the investor in the NPS scheme. Tax exemption of up to Rs 50,000 under Section 80 CCD (1B) of Income Tax, tax exemption of up to Rs 1,50,000 under Section 80 CCE ie total tax exemption of up to Rs 200000 is available.

Tax exemption on the part of the company
Tax exemption up to 10% of salary (Basic +DA) is applicable under section 80 CCD (2) on the contribution made by the company to the account of NPS subscribers. That is, NPS subscribers can claim a 10% tax deduction.