NPS Product

Which of the following statements about the pension scheme described as INCORRECT?

• It is a pension scheme offered by the Government of India.
• It is regulated by the Pension Fund Regulatory & Development Authority (PFRDA).
• It is applicable only to Indian citizens residing in India.
• The entry age for this scheme is between 18 and 70 years.

What is the primary benefit offered by NPS

• Only basic tax deductions
• Additional tax benefits over and above Rs. 1.5 lacs of Section 80C Limit
• Exemption from all taxes
• Direct cash benefits

what are the two main types of contributions to NPS?

• Deposited by Employee directly and Deposited by Bank
• Deposited by Employer (Government) and Deposited by Bank
• Deposited by Employee directly and Deposited by Employer (Government)
• Deposited by Public and Deposited by Private Sector

For an employee's direct contribution, what is the maximum investment eligible for tax deduction under Section 80CCD (1B)?

• Up to Rs. 1.5 Lacs
• Up to Rs. 50,000
• Up to Rs. 7.5 Lakhs
• No limit

If an employer (Government) contributes to NPS, what percentage of salary is eligible for tax deduction under Section 80CCD (2)?

• Up to 5% of Salary
• Up to 10% of Salary
• Up to 15% of Salary
• Up to 20% of Salary

What components of salary are considered for the employer's contribution calculation for tax deduction under Section 80CCD (2)?

• Only Basic Salary
• Only Dearness Allowance
• Basic + Dearness Allowance
• Gross Salary

What is a key characteristic of the "Low Cost" USP mentioned for employees?

• High charges levied under NPS
• Charges levied under NPS are extremely low
• NPS contributions are tax-exempt
• Customers receive a fixed return on investment

Under the "Flexible Contribution Option," what can customers choose to do regarding their NPS contribution?

• Decrease their NPS contribution
• Increase their NPS contribution over and above their Fixed Contribution (10% of Basic + DA)
• Fix their NPS contribution at 10% of Basic + DA
• Opt-out of NPS contributions entirely

What kind of investment options are available under the "Choice of Funds & Investment Strategy" USP?

• Only Corporate Bonds
• Only Government Securities
• Equities, Corporate Bonds, and Government Securities
• Only Equities

What is the maximum percentage a customer can invest in equities, depending on their risk appetite, according to the "Choice of Funds & Investment Strategy" for Govt employees ?

• Up to 100%
• Max up to 50%
• Max up to 25%
• A fixed percentage for all customers