Melghat Tiger Reserve
Melghat Tiger Reserve The Government of India in consultation with the State Government and in accordance with the recommendations of the Task Force appointed on the matter of Tiger Conservation, by the Indian Board of Wildlife established nine Tiger reserve in the first phase in the country during the year 1973-74. Melghat Tiger Reserve was one of this Nine Tiger Reserve and came in to being on 22.2.1974 initially over an area of 1571.74 Sq. K.m. This was the first Tiger Reserve to be declared in the State of Maharashtra, which subsequently get expanded to 2029.04 Sq. Location Situated in the Satpura hill ranges of Central India, Melghat Tiger Reserve lies in Melghat Forests of Amravati district in Vidarbha region of Maharashtra bordering Madhya Pradesh in the North and East. Its area is geographically located as given below: Latitude: Between 210 151 N and 210 451 N Longitude: Between 760 571 E and 770 301 E Altitude: 312M to 1178 M above MSL. Features: Melghat tiger reserve is located in the Amaravati district of Maharashtra. Melghat Tiger Reserve is located on the southern offshoot of the Satpura Hill Range in Central India, called Gavilgarh Hill. It is 225 km west of Nagpur. It was established as a wildlife sanctuary in 1967, and was declared a tiger reserve in 1974. It was among the first nine tiger reserves notified in 1973-74 under Project Tiger, a wildlife conservation project initiated in India in 1972 to protect Bengal tigers. It was the first tiger reserve of Maharashtra. It is still one of the biggest tiger reserves in the country in terms of area. The name ‘Melghat’ means the confluence of various ‘ghats’ or valleys as is typical from the landscape of this tiger Reserve. Apart from Tigers the other prominent animals are Sloth Bear, Indian Gaur, Sambar deer, Leopard, Nilgais, etc. The endangered and ‘back from extinction’ Forest Owlet is also found in various areas of Melghat. The forests are of deciduous nature and have been classified as‘dry deciduous forests’. Most prominent is It forms a very important catchment to Tapi river The Korku tribeadds to the cultural diversity of the Reserve.
Places of Worship Act 1991
Places of Worship Act 1991 The Supreme Court asked the Centre to respond to a plea challenging the Places of Worship (Special Provisions) Act, 1991. In agreeing to examine the law, the court has opened the doors for litigation in various places of worship across the country including Mathura and Varanasi. What is the law about? Passed in 1991 by the P V Narasimha Rao-led Congress government, the law seeks to maintain the “religious character” of places of worship as it was in 1947 — except in the case of Ram Janmabhoomi-Babri Masjid dispute, which was already in court. The law was brought in at the peak of the Ram Mandir movement, exactly a year before the demolition of the Babri Masjid. Introducing the law, then Home Minister S B Chavan said in Parliament that it was adopted to curb communal tension. What are its provisions? The clause declaring the objective of the law describes it as “an Act to prohibit conversion of any place of worship and to provide for the maintenance of the religious character of any place of worship as it existed on the 15th day of August, 1947, and for matters connected therewith or incidental thereto”. Sections 3 and 4 of the Act declare that the religious character of a place of worship shall continue to be the same as it was on August 15, 1947 and that no person shall convert any place of worship of any religious denomination into one of a different denomination or section. Section 4(2) says that all suits, appeals or other proceedings regarding converting the character of a place of worship, that were pending on August 15, 1947, will stand abated when the Act commences and no fresh proceedings can be filed. However, legal proceedings can be initiated with respect to the conversion of the religious character of any place of worship after the commencement of the Act if the change of status took place after the cut-off date of August 15, 1947. What does it say about Ayodhya, and what else is exempted? Section 5 says: “Act not to apply to Ram Janma Bhumi Babri Masjid. Nothing contained in this Act shall apply to the place or place of worship commonly known as Ram Janma Bhumi-Babri Masjid situated in Ayodhya in the State of Uttar Pradesh and to any suit, appeal or other proceeding relating to the said place or place of worship.” Besides the Ayodhya dispute, the Act also exempted: any place of worship that is an ancient and historical monument or an archaeological site, or is covered by the Ancient Monuments and Archaeological Sites and Remains Act, 1958; a suit that has been finally settled or disposed of; any dispute that has been settled by the parties or conversion of any place that took place by acquiescence before the Act commenced. What has the Supreme Court said about the Act? In the 2019 Ayodhya verdict, the Constitution Bench led by former Chief Justice of India Ranjan Gogoi referred to the law and said it manifests the secular values of the Constitution and strictly prohibits retrogression. “In providing a guarantee for the preservation of the religious character of places of public worship as they existed on 15 August 1947 and against the conversion of places of public worship, Parliament determined that independence from colonial rule furnishes a constitutional basis for healing the injustices of the past by providing the confidence to every religious community that their places of worship will be preserved and that their character will not be altered. The law addresses itself to the State as much as to every citizen of the nation. Its norms bind those who govern the affairs of the nation at every level. Those norms implement the Fundamental Duties under Article 51A and are hence positive mandates to every citizen as well. The State, has by enacting the law, enforced a constitutional commitment and operationalized its constitutional obligations to uphold the equality of all religions and secularism which is a part of the basic structure of the Constitution,” the court said. Why is the law under challenge? Delhi advocate Ashwini Upadhyaya has challenged the law on the ground that violates secularism. He has also argued that the cut-off date of August 15, 1947 is “arbitrary, irrational and retrospective” and prohibits Hindus, Jains, Buddhists, and Sikhs from approaching courts to “re-claim” their places of worship which were “invaded” and “encroached” upon by “fundamentalist barbaric invaders”. The BJP had opposed the law even when it was introduced, arguing that the Centre has no power to legislate on “pilgrimages” or “burial grounds” which is under the state list. However, the government had said it could make use of its residuary power under Entry 97 of the Union List to enact this law. Entry 97 confers residuary powers to the Centre to legislate on subjects that are not enumerated in any of the three lists. Another criticism against the law is that the cut-off is the date of Independence, which means that status quo determined by a colonial power is considered final. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Panna Tiger Reserve
Panna Tiger Reserve The devastating impact of the Ken-Betwa river linkage project on the Panna Tiger Reserve (PTR) in Madhya Pradesh. Panna Tiger Reserve: Panna National Park in Madhya Pradesh, a popular tourist spot for wildlife lovers has been declared as a UNESCO Biosphere Reserve. A prime tiger-land Located in Vindhyan Hills in northern Madhya Pradesh. Covering an area of approx 542.67 sq km, the thick deciduous forest of the Panna National Reserve is the natural habitat of sloth, Indian wolf, Bear Pangolin, Leopard, Gharial, Indian fox and a lot more. Fragile though dynamic dry deciduous forest. Characterised by extensive plateaus and gorges. Land of mesmerising waterfalls. Naturals and archaeological splendour. Land of legends and cultural richness. The land of the Ken river, which lends it unparalleled beauty. The northern most boundary of natural distribution to teak (Tectona grandis). The eastern limit of teak-kardhai (Anogeissus pendula) mixed forests. Links the eastern and western populations of wild animals through the NE-SW running Vindhyan Hill ranges. The most important protected area in the north-central highlands of india. Tiger Reintroduction Project started in 2009 by bringing five female and two male felines from Bandhavgarh and Kanha national parks. The Panna National Park got the status of Project Tiger Reserve 13 years after its formation in 1981. Report by the All India Tiger Estimation made Madhya Pradesh the state with the highest number of tigers. The state had a total of 526 big cats according to 2018 census. After Madhya Pradesh, Karnataka and Uttarakhand have the highest number of tigers. Read also Critical Tiger Habitat CWH Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Production Linked Incentive Schemes
Production Linked Incentive Schemes The Ministry of Electronics and IT had approved some proposals by electronics manufacturers under its Production Linked Incentive (PLI) Scheme. PLI Scheme: The production linked incentive (PLI) scheme, introduced by the government across the 10 key specific sectors is aimed at making manufacturers globally competitive and attract investment in the areas of core competency. The scheme is targeted at making the country an integral part of the global supply chain. According to a recent research report by CARE Ratings, the final proposals of PLI for the individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Union Cabinet. Read Also NIRVIK scheme The production linked incentive scheme will affect the 10 key specific sectors once they are individually implemented: The scheme for ACC battery is likely to incentivize large domestic and international players in establishing a competitive ACC battery set-up in the country The scheme is likely to make the Indian automotive industry more competitive and will enhance global activity for the sector. For the telecom sector, the scheme is expected to attract large investments from global players and help domestic companies seize emerging opportunities, to become major players in the export market. The scheme will attract large investment in the sector to further boost domestic manufacturing, especially in the MMF segment and technical textiles. A focused scheme for solar PV modules will incentivize domestic and global players to build large-scale solar PV capacity in the country and help in capturing the global value chains for solar PV manufacturing A PLI scheme in the specialty steel sector will help in enhancing manufacturing capabilities for value-added steel leading to an increase in total exports. Specific product lines in food sector having high growth potential to generate medium-to large scale employment have been identified for providing support through the PLI scheme. Read Also SVAMITVA Scheme Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. JOIN NOW
Yogyakarta Principles
Yogyakarta Principles In a landmark judgment the Indian Supreme Court has held that the ‘Yogyakarta Principles on the Application of International Law in Relation to Issues of Sexual Orientation and Gender Identity’ should be applied as a matter of national law. Significance: The Yogyakarta Principles were developed by a coalition coordinated by the International Service for Human Rights and the International Commission of Jurists and were formally adopted by a panel of leading international law experts in November 2006. They provide authoritative guidance on the human rights of gay, lesbian, bisexual, transgender and intersex persons and the obligations of States to promote and protect these rights, ensure full equality and address discrimination. ‘ISHR welcomes the decision of the Supreme Court of India affirming the right to non-discrimination on the grounds of gender identity and recognising the relevance and applicability of international human rights norms, such as the Yogyakarta Principles,’ ‘The right to non-discrimination on the grounds of sexual orientation and gender identity is both fundamental and universal and we call on all States to comply with the Yogyakarta Principles in developing and implementing laws, policies and practices in this regard,’. Why are they needed? Human rights violations targeted toward persons because of their actual or perceived sexual orientation or gender identity constitute an entrenched global pattern of serious concern. They include extra-judicial killings, torture and ill-treatment, sexual assault and rape, invasions of privacy, arbitrary detention, denial of employment and education opportunities, and serious discrimination in relation to the enjoyment of other human rights. Key human rights mechanisms of the United Nations have affirmed States’ obligation to ensure effective protection of all persons from discrimination based on sexual orientation or gender identity. However, the international response has been fragmented and inconsistent, creating the need for a consistent understanding of the comprehensive regime of international human rights law and its application to issues of sexual orientation and gender identity. The Yogyakarta Principles do this. Read GS Notes How did the Principles come about? The Principles were developed and unanimously adopted by a distinguished group of human rights experts, from diverse regions and backgrounds, including judges, academics, a former UN High Commissioner for Human Rights, UN Special Procedures, members of treaty bodies, NGOs and others. The Rapporteur of the process, Professor Michael O’Flaherty, has made immense contributions to the drafting and revision of the Yogyakarta Principles. A key event in the development of the Principles was an international seminar of many of these legal experts that took place in Yogyakarta, Indonesia at Gadjah Mada University from 6 to 9 November 2006. That seminar clarified the nature, scope and implementation of States’ human rights obligations in relation to sexual orientation and gender identity under existing human rights treaties and law. What do they cover? The Yogyakarta Principles address the broad range of human rights standards and their application to issues of sexual orientation and gender identity. These include extrajudicial executions, violence and torture, access to justice, privacy, non-discrimination, rights to freedom of expression and assembly, employment, health, education, immigration and refugee issues, public participation, and a variety of other rights. How can these rights be implemented? The Principles affirm the primary obligation of States to implement human rights. Each Principle is accompanied by detailed recommendations to States. The Principles also emphasise, however, that all actors have responsibilities to promote and protect human rights. Additional recommendations are therefore addressed to the UN human rights system, national human rights institutions, the media, non-governmental organisations, and others. India: In the case of India, in particular, call on the Government to act consistently with the Yogyakarta Principles by repealing section 377 of the Indian Penal Code, which effectively criminalises same-sex relations. Also call on India to comply with the spirit and intent of this judgment by supporting efforts at the UN Human Rights Council to adopt a resolution condemning violence and discrimination on the grounds of sexual orientation and gender identity.’ Yogyakarta Principles and the Section 377 India is one of the 72 countries worldwide that criminalise homosexuality now. Forty five of these countries have outlawed sexual relationships between women. According to an annual report by the International Lesbian, Gay, Bisexual, Trans and Intersex Association (ILGA), there are eight countries in which homosexuality can result in a death penalty, and dozens more in which homosexual acts can result in a prison sentence. Against this backdrop, the International Commission of Jurists and the International Services for the Human Rights, on behalf of a coalition of Human Rights Organisations, have developed the Yogyakarta principles. Yogyakarta principles are a set of international legal principles on the application of the international law to human rights violations based on sexual orientation and gender identity to bring greater clarity and coherence in state’s human rights obligations. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Irrawaddy Dolphin
Irrawaddy Dolphin The population of dolphins in Chilika Lake, the largest freshwater lake,and along the Odisha coast has doubled this year compared to the last year. The endangered Irrawaddy dolphin population has jumped from 146 in 2020 to 162 this year. The Irrawaddy Dolphin, Orcaella brevirostris, is listed as ‘Vulnerable’ on the IUCN Red List of Threatened Species. A distinctive dolphin with a rounded head and no beak, this species is patchily distributed in shallow, coastal waters of the Indo-Pacific, and also occurs in three large river systems – the Ayeyarwady in Myanmar, the Mekong in Cambodia, and the Mahakam in Borneo, Indonesia. The main threat to the Irrawaddy Dolphin is entanglement in gillnets. Habitat loss and degradation from pollution, dam construction, sedimentation, and vessel traffic are additional concerns. These dolphins are revered in many parts of Asia. Five subpopulations, including all three freshwater populations, have suffered dramatic declines in range and numbers and are considered Critically Endangered. The Irrawaddy Dolphin is legally protected from deliberate capture in most of its range, and specially protected areas have been designated in several areas. Restrictions on the use of gillnets are necessary to reduce entanglement mortality. The use of non-entangling and more selective gear is to be encouraged. Read Ganges River Dolphin Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. Join now
Umngot River
Umngot River Why in news: A 210 MW hydroelectric project has been proposed on Umngot, considered India’s clearest river. The dam is proposed on the upstream of the river Umngot in the West Jaintia Hills district . The Meghalaya State Pollution Control Board (MSPCB) which had scheduled a public hearing for the proposed project has been obstructed from conducting the public hearing by the villagers of East Khasi Hills district. Umngot River: Umngot flows through Dawki, a small but busy town in the East Jaintia Hills district near the Indo-Bangladesh border. The town itself is a mere 95 km from Shillong. Dawki serves as a busy trade route between India and Bangladesh where hundreds of trucks pass every day. The Umngot itself is a prime fishing spot for fishermen from nearby areas. The river is the natural boundary between Ri Pnar (of Jaintia Hills) with Hima Khyrim (of Khasi Hills) over which hangs a single span suspension bridge It is the gateway to Bangladesh Issues: The villages are near the border with Bangladesh in East Khasi Hills district but the dam is proposed upstream in the adjoining West Jaintia Hills district. The locals fear that the project, if executed, would cause irreparable losses by wiping out their areas from the tourism map, besides affecting many villages in the downstream areas dependent on the Umngot. The project documents say people of 13 villages along the Umngot are likely to lose 296 hectares of land due to submergence if the dam comes up. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Humpback dolphins
Humpback dolphin Humpback dolphins are found in relatively shallow nearshore waters throughout their range which includes most of the coastlines in Australia, Africa and Asia. Their dependence on nearshore habitats brings them into contact with many types of human activities, putting them at risk from fisheries entanglement, boat traffic, pollution, and habitat loss. However, this habitat selection also makes them easy to observe from shore. There are four recognized species of humpback dolphins with very little overlap between their ranges: the, Indo-Pacific humpback dolphin (Sousa chinensis), the Indian Ocean humpback dolphin ( plumbea) the Atlantic humpback dolphin (S. teuszi) and the Australian humpback dolphin(S. sahulensis). Because they tend to be relatively shy, and less active than the bottlenose dolphins with which they often share territory, this species is not often the primary target of dolphin watching tours. However, they can be encountered in nearshore waters, and in some areas, like Hong Kong, and the Musandam Peninsula of Oman, they are the stars of the show. Why in news: Dolphin census data released by wildlife wing of the Odisha State Forest and Environment Department Distribution: Humpback dolphins are limited in their range from the West coast of Africa in the West to the coast of China and the east coast of Australia in the East and are always found in shallow nearshore waters. The four different species have distinct geographic ranges as follows: Atlantic humpback dolphins are native to: Angola, Benin, Cameroon, Congo (Republic); Congo (Democratic Republic); Côte d’Ivoire, Equatorial Guinea ; Gabon; The Gambia; Ghana; Guinea; Guinea Bissau; Liberia; Mauritania; Nigeria; Senegal; Sierra Leone, Togo; Western Sahara Indian Ocean humpback dolphins are native to: Bahrain; Bangladesh; Comoros; Djibouti; Egypt, Eritrea; India; Iran; Iraq; Israel; Kenya; Kuwait; Madagascar; Mayotte; Mozambique; Myanmar; Oman; Pakistan; Qatar; Saudi Arabia; Somalia; South Africa;Sri Lanka; Sudan; Tanzania; UAE; Yemen. Indo-Pacific humpback dolphins are native to: Bangladesh; Brunei Darrusalam; Cambodia; India;Indonesia; Malaysia; Myanmar( Burma); People’s Republic of China; Philippines; Singapore; Taiwan (Republic of China); Thailand; Vietnam Australian humpback dolphins are native to: Australia and Papua New Guinea Biology and Ecology: Feeding: Humpback dolphins seem to be fairly adaptable in their diet, with studies from South Africa, Hong Kong, Australia and Oman revealing a variety of fish species, and sometimes crustaceans, squids, octopus and cuttlefish in the stomachs of by-caught or stranded animals. Humpback dolphins use a variety of feeding techniques, including partially stranding themselves on shore while chasing fish. In some locations, humpback dolphins are also known to follow fishing trawlers in order to opportunistically feed on discarded and escaped fish. Social structure, Reproduction and growth: Humpback dolphins usually occur in small groups of 2-6 individuals, but larger aggregations of up to 30 or 50 individuals have been recorded from Oman, and Malaysia, and over 100 individuals from Bangladesh. Males often show scarring consistent with aggression within their own species – such as tooth rakes on their dorsal fins. The species also appears to interact with other dolphin species in its range, with a number of documented cases of both benign and aggressive interactions between bottlenose dolphins and humpback dolphins, and the apparent incorporation of an Irrawaddy dolphin into humpback dolphin groups in two different sites in Malaysian Borneo. Females of all four species are thought to reach sexual maturity at 9-10 years. In Hong Kong and South Africa, calves are predominantly born in the spring and summer, but little is known about the seasonality of reproduction or other life history characteristics of Australian or Atlantic humpback dolphins. Threats and conservation: As with many other species of whales and dolphins, individual humpback dolphins can be recognised from the unique patterns of scarring and pigmentation on their dorsal fins. Researchers build up catalogues of known individuals and track them over time. Because almost all humpback dolphin populations have fairly stable nearshore home ranges, they provide excellent subjects for long-term monitoring, including studies of social structure, reproductive parameters, residency and range. Because their nearshore habitat also brings them into contact with human activity, they are also the focus of studies that try to assess the potential impact of coastal development and other threats on dolphin populations. Read Also Ganges River Dolphin Natural Predators: Humpback dolphins’ main natural predators are sharks, with one photo-identification study in Australia revealing that 46% of sampled humpback dolphins had scarring associated with shark attacks. Great white, tiger, and bull sharks are thought to be the species most likely to pose a risk to (young) dolphins. Human induced threats Humpback dolphins throughout Africa, Australia and Asia often live in close proximity to densely populated urban areas. In developed areas, like Hong Kong, their habitat is continually affected by coastal construction and high volumes of vessel traffic. In developing countries, their distribution often overlaps with areas where fishing effort is exponentially increasing. As with almost all species of whales and dolphins, accidental entanglement in fishing gear – or bycatch- is the leading source of human-induced mortality for humpback dolphins, but coastal development, pollution, and in some areas, such as West Africa, direct hunting also pose serious threats. Conservation status: The IUCN Red List status of all four species of humpback dolphins has recently been re-assessed, resulting in the current designations: (1) Atlantic humpback dolphin- critically endangered,; (2) Indian ocean humpback dolphin -endangered,; (3) Indo-Pacific humpback dol phin- vulnerable; and (4) Australian humpback dolphin – vulnerable. Of all four species, Atlantic humpback dolphins are considered the most severely at risk of extinction, and are listed on Appendix I of the Convention on Migratory Species (CMS). The IWC also considers this species of the utmost priority for conservation action. 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Nature Index 2020
Nature Index 2020 Nature Index table 2020 has released, India is placed twelth globally in science research output. The top five positions have gone to the United States of America, China, Germany, United Kingdom and Japan. The Nature Index Annual Tables 2020 is based on the research published in the 82 scientific journals covered by the Nature Indexand selected by a panel of 58 researchers in the natural sciences. What is the Nature Index? The database is compiled by Nature Research, a division of the international scientific publishing company Springer Nature that publishes academic journals. Nature Research’s flagship publication is Nature, a weekly multidisciplinary journal first published in 1869. The Nature Index provides a close to real-time proxy of high-quality research output and collaboration at the institutional, national and regional level. The Nature Index is updated monthly and also releases annual tables of country. Key findings : Three of the autonomous institutions of the Department of Science & Technology, Government of India have found their place among top 30 Indian Institutions including universities, IITs, IISERs, and Research Institutions and Labs as per Nature Index 2020 ratings. NCASR Banglore ranks 4thamong academic institutions in life sciences, 10th in Chemistry and Physical Sciences, 10th among Indian academic institutions, and 469th in the global ranking. India Ranks Global Ranks Institutions 1 160 Council of Scientific and Industrial Research (CSIR) 2 184 Indian Institute of Science (IISc) Bangalore 3 260 Tata Institute of Fundamental Research (TIFR) Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
The National Pension System (NPS)
The National Pension System – NPS The National Pension System (NPS) will no longer compel investors to convert 40% of their accumulated retirement corpus into an annuity, as poor yields and high inflation are translating into negative returns, the Pension Fund Regulatory and Development Authority. The regulator will soon allow those saving up to ₹5 lakh to take the whole amount at retirement, up from ₹2 lakh at present. What is National Pension System NPS ? The National Pension Scheme is a social security initiative by the Central Government. This pension programme is open to employees from the public, private and even the unorganised sectors except those from the armed forces. The scheme encourages people to invest in a pension account at regular intervals during the course of their employment. After retirement, the subscribers can take out a certain percentage of the corpus. As an NPS account holder, you will receive the remaining amount as a monthly pension post your retirement. Earlier, the NPS scheme covered only the Central Government employees. Now, however, the PFRDA has made it open to all Indian citizens on a voluntary basis. NPS scheme holds immense value for anyone who works in the private sector and requires a regular pension after retirement. The scheme is portable across jobs and locations, with tax benefits under Section 80C and Section 80CCD. Who should invest in National Pension System (NPS) ? The NPS is a good scheme for anyone who wants to plan for their retirement early on and has a low-risk appetite. A regular pension (income) in your retirement years will no doubt be a boon, especially for those individuals who retire from private-sector jobs. A systematic investment like this can make a massive difference to your life post-retirement. In fact, Salaried people who want to make the most of the 80C deductions can also consider this scheme. Read Also Saubhagya Scheme Features & Benefits of NPS a. Returns/Interest A portion of the NPS goes to equities (this may not offer guaranteed returns). However, it offers returns that are much higher than other traditional tax-saving investments like the PPF. This scheme has been in effect for over a decade, and so far has delivered 8% to 10% annualised returns. In NPS, you are also allowed the option to change your fund manager if you are not happy with the performance of the fund. b. Risk Assessment Currently, there is a cap in the range of 75% to 50% on equity exposure for the National Pension Scheme. For government employees, this cap is 50%. In the range prescribed, the equity portion will reduce by 2.5% each year beginning from the year in which the investor turns 50 years of age. However, for an investor of the age 60 years and above, the cap is fixed at 50%. This stabilizes the risk-return equation in the interest of investors, which means the corpus is somewhat safe from the equity market volatility. The earning potential of NPS is higher as compared to other fixed-income schemes. c. Tax efficiency – NPS tax benefit There is a deduction of up to Rs.1.5 lakh to be claimed for NPS – for your contribution as well as for the contribution of the employer. – 80CCD(1) covers the self-contribution, which is a part of Section 80C. The maximum deduction one can claim under 80CCD(1) is 10% of the salary, but no more than the said limit. For the self-employed taxpayer, this limit is 20% of the gross income. – 80CCD(2) covers the employer’s NPS contribution, which will not form a part of Section 80C. This benefit is not available for self-employed taxpayers. The maximum amount eligible for deduction will be the lowest of the below: a. Actual NPS contribution by employer b. 10% of Basic + DA c. Gross total income – You can claim any additional self contribution (up to Rs 50,000) under section 80CCD(1B) as NPS tax benefit. The scheme, therefore, allows a tax deduction of up to Rs 2 lakh in total. d. Withdrawal Rules After 60 Contrary to common belief, you cannot withdraw the entire corpus of the NPS scheme after your retirement. You are compulsorily required to keep aside at least 40% of the corpus to receive a regular pension from a PFRDA-registered insurance firm. The remaining 60% is tax-free now. e. Early Withdrawal and Exit rules As a pension scheme, it is important for you to continue investing until the age of 60. However, if you have been investing for at least three years, you may withdraw up to 25% for certain purposes. These include children’s wedding or higher studies, building/buying a house or medical treatment of self/family, among others. You can make a withdrawal for up to three times (with a gap of five years) in the entire tenure. These restrictions are only imposed on tier I accounts and not on tier II accounts. f. Equity Allocation Rules The NPS invests in different schemes, and the Scheme E of the NPS invests in equity. You can allocate a maximum of 50% of your investment to equities. There are two options to invest in – auto choice or active choice. The auto choice decides the risk profile of your investments as per your age. For instance, the older you are, the more stable and less risky your investments. The active choice allows you to decide the scheme and to split your investments. g. Option to change the Scheme or Fund Manager With NPS, you have the provision to change the pension scheme or the fund manager if you are not happy with their performance. This option is available for both tiers I and II accounts. The two primary account types under the NPS are tier I and tier II. The former is the default account while the latter is a voluntary addition. The table below explains the two account types in detail. Particulars NPS Tier-I Account NPS Tier-II Account Status Default Voluntary Withdrawals Not permitted Permitted Tax exemption Up to Rs 2 lakh p.a.(Under 80C and 80CCD) 1.5
