About National Pension Scheme (NPS)

What is National Pension Scheme (NPS)?

National Pension Scheme (NPS) was initially launched in January 2004 for government employees but then in 2009, it was made available to every citizen of India whether resident or non-resident aged between 18-60 years.

NPS allows you to contribute regularly in a pension account during their working life. On retirement, you can withdraw a part of the corpus in a lumpsum and use the remaining corpus to get an annuity to secure a regular income after your retirement.

 

Who can join NPS?

Every citizen of India whether resident or non-resident aged between 18-60 years can join the NPS.

 

Can NPS be joined by a Non-Resident?

Yes, every “citizen of India” whether resident or non-resident can join NPS, point to note here is that as soon as your citizenship is changed from Indian to another, your NPS account would get closed.

National Pension SchemeHow to join NPS?

To join NPS you have to open the NPS account with Point of Presence (POP) or point of presence service providers (POP-SPs). Most of the private and public-sector banks & number of other financial institutions have been enrolled as POPs; the authorized branches of such POPs are known as POP-SPs.

 

Who regulates/governs POPs?

POPs are regulated by Pension Fund Regulatory and Development Authority (PFRDA) with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust.

 

How to find a POP?

To find a POP near you please go to https://npscra.nsdl.co.in/pop-sp.php.

 

How to open an account to join NPS?

You have to submit the subscriber registration form to POP/POP-SP along with your address, identity & Date of Birth proof.

 

Is there any identification number to show me as a Subscriber to NPS?

Just like an Income Tax PAN card on becoming the NPS subscriber you would be issued a card with 12 digit unique identification number called Permanent Retirement Account Number or PRAN.

 

May I have multiple NPS account?

No, you can’t have more than one NPS account neither its required as NPS account is portable from one institution to another even if you change the city and/or employment.

 

What is the tax benefit for joining NPS?

An additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under sub-section 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under section 80C of Income Tax Act. 1961. The contribution by government employees under Tier-II of NPS will be covered under Section 80C for deduction up to Rs. 1.50 lakh with the lock-in period of 3 years

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