What is the primary objective of the National Pension Scheme (NPS)?

To provide short-term investment opportunities To facilitate wealth creation for high-net-worth individuals To help individuals build a retirement corpus for old-age benefits To offer high-risk, high-return investment options

What is the age range for individuals eligible to participate in the NPS?

16 to 58 years 21 to 65 years 18 to 60 years 25 to 70 years

How are NPS returns generated?

Through fixed interest rates determined by the government Through market-linked investments managed by private entities Through fund managers acting on behalf of the National Pension Scheme Through a combination of government subsidies and individual contributions

What is the key advantage of NPS over other long-term tax-saving instruments like Public Provident Funds?

NPS offers guaranteed returns, while PPF returns are subject to market fluctuations NPS allows for early withdrawals without penalties, unlike PPF NPS returns are significantly higher due to partial equity allocation NPS contributions are eligible for higher tax deductions compared to PPF

What is the maximum equity exposure allowed in NPS investments?

100% 25% to 50% 50% to 75% 90%

What is the minimum percentage of the total invested corpus that must be maintained in the NPS fund until retirement?

25% 40% 60% 75%

What is the main purpose of the 80CCD(2) tax regulation related to NPS?

To provide tax exemptions on self-contributed amounts to NPS To exempt employer contributions towards NPS funds from taxes To offer tax benefits on withdrawals made from NPS after retirement To encourage additional voluntary contributions to NPS

What is the primary benefit of the 'auto choice' investment option in NPS?

It allows investors to customize their investment portfolio based on their risk appetite It automatically adjusts the risk portfolio based on the investor's age It guarantees a minimum return rate regardless of market conditions It provides tax benefits on withdrawals made before retirement

What is the maximum amount of tax exemption an individual can claim on NPS contributions under Section 80CCD(1B)?

Rs. 1 Lakh Rs. 2 Lakh Rs. 50,000 Rs. 1.5 Lakh

What is the minimum investment period required before an individual can make partial withdrawals from their NPS account?

1 year 2 years 3 years 5 years