NPS – National Pension Scheme

National Pension System is a government-sponsored pension scheme that allows employees and self-employed persons to invest to make retirement provisions. NPS also qualifies for an additional tax benefit of Rs.50,000 under Section 80CCD(1B). Investors can withdraw 60 % of their corpus tax-free and he has to compulsory use the balance 40% amount to buy an annuity or pension plan to make provision for regular income.