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during the year we withdraw rupees 10000 in cash and rupees 500 in goods each month received rupees 20000 as pension from government during the accounting year but investment only 13000 into business out of his pension money single entry​

Answer»

Who can use NPS calculator?NPS calculator can be used by anyone who is ELIGIBLE to invest in the scheme. As per the NPS rules, any Indian citizen between the ages of 18 years and 60 years can invest in the scheme. The person will require complying with know-your-customer (KYC) norms to start the investing in the scheme.How to use this calculatorTo know how much corpus will be accumulated by you, the calculator will require the following details:a) Your current age and the age you wish to retireb) Amount that will be INVESTED by you every monthc) Returns that you expect to earn from your NPS investmentd) Annuity period, i.e., number of years over which you wish to receive the monthly pension in the post RETIREMENT years. You are REQUIRED to mention this number in years.e) The percentage of pension wealth invested in the annuity plan means the PERCENT of accumulated corpus you will use to buy a pension plan. This cannot be below 40 percent if you withdraw at 60 years or more. If you withdraw before 60 years, it cannot be below 80 percent.f) Expected rate of interest on the annuity investment is the returns that you expect to earn from your annuity (pension) during the post-retirement period.How the calculator worksWith the inputs given by you, you will get the corpus that will be accumulated by you at the time of your retirement. The corpus is calculated by using the principle of power of compounding.What the calculator showsThe NPS calculator will show you the details of your investment. It will show you the amount invested by you during the accumulation phase of the scheme, interest earned by you, and the total amount of corpus generated at the time of maturity.The calculator also shows the break-up of details of the amount which is re-invested to receive monthly pension and lump sum amount withdrawn by you. Based on the expected returns from the annuity, it also shows the amount of monthly pension that you will receive.



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