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June 2009

Miscellaneous — National Pension Scheme notified with effect from 1 May 2009.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Nimesh Dedhia, Vijay Kewalramani
Chartered Accountants
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  1. Miscellaneous — National Pension Scheme notified with
    effect from 1 May 2009.

National Pension Scheme which was erstwhile applicable only
to Government employees is now made applicable to all the eligible citizens of
India (both resident and non-resident) of the age of 18 to 55 years of age,
with effect from 1 May 2009. An individual can contribute savings into this
non-withdrawable account which matures and can be annutised post 60 years of
age or as prescribed by the scheme. There is another voluntary contribution
scheme, wherein money can be withdrawn, however the same is yet to be
notified. To enrol in the scheme, an individual needs to submit a registration
Form UOS-s1 to selected agencies. NRIs should have a bank account in India to
register in this scheme. After the account is opened, the Central Record
Keeping Agency shall allot a unique Permanent Retirement Account Number (PRAN)
card. As per the scheme the minimum contribution is Rs. 500 (Rs. 6000 per
year) and a person needs to contribute at least 4 times a year. Investment
options are also available as prescribed in the scheme.

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