National Pension Scheme (NPS) is a retirement savings scheme where both employer and an employee contribute towards building wealth which is payable to the employee at the time of retirement. All central/state government employees falling between the age brackets of 18 to 60 years can open an NPS account. However, non-government citizens who are looking for retirement savings can get themselves covered under the NPS umbrella, by following below-mentioned procedure.
Investments up to INR 1,50,000 are tax deductible under Section 80C. So, investors looking for higher tax saving options can invest in NPS.
NPS also brings you an additional tax benefit of INR 50,000 under section 80CCD (1B).
The minimum amount to invest in an NPS scheme is INR 6,000 annually.
The minimum transaction amount required is INR 500.
The investment made under NPS can be diversified into three classes of assets - equity, government Bonds and fixed return instruments. This gives and opportunity for investors to choose the allocation of assets based on their preference and risk appetite.
This account is opened for government employees by their respective employers.
This account is designed for private sector employees.
This account is for citizens who are not covered in the above two categories.
This account is a government-sponsored with some subsidy offered by the government.
National Pension Scheme has two tiers:
To open a pension scheme account, a subscriber has to take the following measures:
Talk to our investment specialist
Subscribers can access their account online with the unique password allotted to you.
A copy of the PRAN card is needed for activating the tier-II account. Any employee who is subscribed to the Tier I can open a Tier-II account by submitting the UOS-S10 form along with PRAN card and INR 1000 to a POP-SP.