Step-by-Step Guide: How to Open a National Pension System Account (NPS)

 Opening a National Pension System (NPS) account in India is a relatively simple process that can be done online or through a physical Point of Presence (PoP) center. Here are the steps to open an NPS account:

1. Obtain a Permanent Retirement Account Number (PRAN): This is a unique 12-digit number that is used to identify your NPS account. You can apply for a PRAN online on the official NPS website (www.npscra.nsdl.co.in) or through a physical PoP center.
2. Fill out the NPS subscriber registration form: This form can be found on the official NPS website or at a physical PoP center. You will need to provide personal information such as your name, address, date of birth, and contact details. You will also need to provide your PRAN and a recent passport-sized photograph.
3. Submit the required documents: The list of documents required to open an NPS account may vary depending on whether you are an Indian citizen or a non-resident Indian (NRI). Commonly required documents include a valid ID proof, address proof, PAN card, and a cancelled cheque or bank statement.
4. Choose your investment options: The NPS offers several investment options including equity, corporate bonds, and government bonds. Based on your risk appetite and financial goal you will have to choose your investment option.
5. Fund your account: Once your NPS account is open, you will need to make an initial contribution to begin investing. Contributions can be made through a variety of methods including online transfer, cheque, demand draft, or cash deposit at a physical PoP center.
6. Regular contributions can be done online, through eNPS platform or PoP centers.

It's important to note that the process for opening an NPS account for NRIs is different and requires more documentation. NRIs should visit the official NPS website for more information and to find a nearby PoP center that can assist them with the process.

It's always recommended to consult with a financial advisor before opening an NPS account or making any investment decisions.

Navigating the National Pension System: Understanding the Benefits and Risks

 The National Pension System (NPS) is a government-backed pension scheme in India that was launched in January 2004. The scheme is designed to provide a secure and stable source of income for individuals during their retirement years.

The NPS is open to all citizens of India, including self-employed individuals, salaried employees, and non-resident Indians (NRIs). The scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA) and offers a variety of investment options, including government bonds, corporate bonds, and equity.

One of the key features of the NPS is its low cost structure. The scheme has low administrative expenses and no entry load or exit load, which makes it an attractive option for individuals looking to save for retirement. The NPS also offers a high degree of flexibility, allowing individuals to make contributions at their own pace and to switch between investment options as their needs change.

Another advantage of the NPS is its portability. Individuals who switch jobs or relocate can continue to make contributions to their NPS accounts, and can also withdraw their accumulated savings and transfer them to a new employer's pension scheme or a new NPS account.

The scheme also offers tax benefits. Contributions made to the NPS are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum of Rs 1.5 lakhs per financial year. Additionally, withdrawals from the NPS are taxed differently as per the withdrawal and corpus tax rules.

It's important to note that the NPS is a long-term investment and the returns are not guaranteed. As with any investment, the returns from the NPS will depend on the performance of the underlying assets, so it's important to understand the risks involved and to diversify your investments accordingly.

In conclusion, the National Pension System (NPS) is a government-backed pension scheme in India that offers a secure and stable source of income for individuals during their retirement years. It is well-regarded for its low cost structure, flexibility and portability, along with tax benefits. It is however important to understand the investment options available and the risks associated with it. Like any investment, it is important to consult a financial advisor before making any investment decisions.

No exemption on meal vouchers & coupons - New Income Tax Slab

Rules changed : No exemption on meal vouchers & coupons - New Income Tax Slab

1. Under the new income tax regime for FY 2020-21, employees cannot claim tax exemption on meal coupons given by way of paid vouchers
2. The income tax department considers free meal or beverages provided by an employer to employees during office hours to be a personal benefit to employees

For those employees who is opting for the new income tax slab which offers a lower tax rate, the income tax department has changed rules for claiming exemption on free meals provided by the employer to employees.

In a notification, the income tax department has said that employees opting for the new tax slab under Section 115BAC will not enjoy the benefit of tax exemption on meal coupons or vouchers.

"Under the new tax regime effective FY 2020-21, an employee can no longer claim an exemption for meal coupons given by way of paid vouchers. The exemption value is Rupees 50 per meal.

The following exemptions are, however, available to all employees:

1) The cost of free food and non-alcoholic beverages given by an employer during working hours at the office or business premises.

2) Tea and snacks provided during working hours.

3) Free food and non-alcoholic beverages provided during working hours for work in a remote area or an offshore installation.

No exemption on meal vouchers & coupons - New Income Tax Slab

If you lost your Job Tomorrow, How long you can survive Financially

If you lost your Job Tomorrow, How long you can survive Financially

According to Robert Kiyosaki :

What is Wealth : " The number of days your can survive without physically working and Still maintaining your standard of living"

Simple Formula to Check : If you lost your Job Tomorrow, How long you can survive Financially :

Formula = A/E-PI

A = Liquid Asset

E = Expenses    

PI = Passive Income or Other Source of Income

Real Time Example

Liquid Asset = 100,000

Expenses = 30,000

Passive / Other Source of Income = 10,000

Real Time Example = 100,000/30,000-10,000

5 Months on the above scenario

Consider you don't have any other source of income

Real Time Example = 100,000/3000

Just 3 Months on the above scenario

According to Warren Buffet :

" If you don't find a way to make money while you sleep, you will work until you die"

" Never depend on one income, make investment to create a second source"

Top 10 Passive Income Ideas :

• Blogging
• Rent your house
• Data Entry
• Youtube Channel
• Invest in Dividend yielding stocks 
• Ride Sharing
• Online Course
  
• E-Book
• Mutual Funds
• Car Renting
  

If you lost your Job Tomorrow, How long you can survive Financially, The best solution

"Financially Literacy" and Plan your future with Passive Income that will take you "Financially Independent"

Rakesh Jhnunjhunwala Indian billionaire investor | Sultan of Indian Share market | King of Dalal Street | Big Bull of Dalal street | Warren Buffet of India

 

 

Rakesh Jhnunjhunwala Indian billionaire investor | Sultan of Indian Share market | King of Dalal Street | Big Bull of Dalal street |  Warren Buffet of India

Name : Rakesh JhnunJhunwala

Rakesh JhnunJhunwala Often referred  as Sultan of Indian Share market, King of Dalal Street, Big Bull of Dalal street,  Warren Buffet of India etc.,

Who is Rakesh Jhunjhunwala :

Jhunjhunwala is an Indian billionaire investor, Charted accountant, He was born in the year 1960 at Hyderabad. Later studied at Sydenham college, Later completed Charted accountants (ICAI). According to the report he is the 48^th Richest man in India with $1.8 billion net worth as on 2019.

Jhunjhunwala when he was a small boy he often part of his father discussion with friends on share market. He got inspired a lot from those conversation when he was young . The King of Dalal Street soon got motivated and asked his father about his passion. Jhunjhunwala father advised him to complete his college studies .  

how did Jhunjhunwala become a billionaire ?

He is a risk taker from the beginning and that paid off on his investments. Initially  Jhunjhunwala  invested in TATA TEA be bought 5000 shares for Rupees 43 rupees and stock rose 143 within a span of three months  it was a threefold success for  Jhunjhunwala. Within few years with his strong knowledge on share market and risk taking attitude Jhunjhunwala earned 20-25 Lakh

 

Rakesh Jhunjhunwala Investment Philosophy:

He is very well known for his long term investment in companies

 1) “One should always rely upon the knowledge readily available in the market to become a successful investor,”  

2) "One has to make mistakes and learn from them"

3) “If you do not believe the markets are supreme, you will never admit that it was your mistake. If you don’t admit that it is your mistake, you will never learn. To succeed in the stock market, one not just needs the ability to learn from mistakes, but also to blame only oneself for it,” he says.

4) “I don’t blame promoters of companies. I blame myself. The promoter is what he is. I have to recognise it if he is not what I expect him to be,” he remarks.

Rakesh Jhunjhunwala Companies in which Rakesh Jhunjhunwala invested :

The Mandhana retail venture

Rallis India

Escorts

Geojit Financial Services

Bilcare

Autoline Industries

Ion Exchange (India)

Multi Commodity exchange of India

CRISIL

VIP Industries

Auto line industries

Sterling Holiday Financial services

Agro tech Foods

Etc., These are some of the companies in which Rakesh Jhunjhunwala invested

 

Rakesh Jhunjhunwala Titan Investment:

Rakesh Jhunjhunwala and Wife sell 1 Crore Titan Shares in March : Jhunjhunwala held 6.69 per cent share in the company. They together sold 1.03 crore worth of shares during last December

 

EPF Contribution reduced and Take home increase

EPF Contribution reduced and Take home increase  India's Finance Minister Nirmala Sitharaman has eased down the contribution an employee and employer makes towards provident fund account amid Covid-19 crisis.

It is important to provide more take-home salary to employees and also to give relief to employers in payment of provident fund account. It will allow more take home for employees and less burden on employers 

What it means:

The statutory contribution of both employees and employers to 10% each from the existing 12% for all establishments covered by EPFO

The FM highlights that, such will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3cr such employees.

New income tax slab for FY 2020-21

5-7.5 lakh: 10% income tax
7.5 lakh to 10 lakh: 15% income tax
10 lakh-12.5 lakh: 20% income tax
12.5 lakh-15 lakh: 25% income tax
15 lakh, 30% income tax

Those earning 5 lakh will not pay any tax