NATIONAL PENSION SYSTEM

Build a Secure Retirement Corpus with NPS — Tax Benefits Up to ₹2L

NPS is India's government-backed retirement savings scheme offering market-linked returns, professional fund management, and among the best tax benefits available under Indian law — all in one regulated platform.

10%

Avg equity return (Tier I)

₹50K

Extra deduction (80CCD 1B)

₹2L

Total tax deduction

Open NPS Account Talk to Advisor

NPS Tax Benefit Summary

Section 80C deductionUp to ₹1,50,000

Section 80CCD(1B)Additional ₹50,000

Total deduction₹2,00,000

Tax saved (30% slab)Up to ₹62,400

Exit at 60 (tax-free)60% lump sum

KEY BENEFITS

Why NPS is One of India's Best Retirement Instruments

Unique ₹50K Extra Deduction

Unlike all other Section 80C investments that compete for a single ₹1.5L limit, NPS offers an exclusive additional ₹50,000 deduction under 80CCD(1B) — saving up to ₹15,600 extra in taxes for those in the 30% bracket.

Choice of Asset Allocation

Choose how much goes into equity (E), corporate bonds (C), and government securities (G) — or let the auto-choice lifecycle fund reduce equity exposure automatically as you approach retirement.

Government-Regulated & Safe

NPS is regulated by PFRDA (Pension Fund Regulatory and Development Authority) and managed by SEBI-registered pension fund managers including SBI, LIC, HDFC, ICICI, and Aditya Birla.

60% Tax-Free at Retirement

At age 60, you can withdraw 60% of your NPS corpus tax-free as a lump sum. The remaining 40% must be used to buy an annuity which provides a monthly pension for life.

Portable & Flexible

Your NPS account (PRAN) stays with you regardless of job changes, city changes, or employer. Contribute any amount, anytime — there's no mandatory monthly SIP requirement after the ₹500 minimum.

Partial Withdrawal Allowed

After 3 years, you can withdraw up to 25% of your own contributions for specific purposes including children's education, home purchase, critical illness treatment, or starting a business.

WHO SHOULD INVEST IN NPS

Is NPS Right for You?

NPS suits individuals who want disciplined, long-term retirement savings with maximum tax efficiency.

✓Salaried professionals aged 25–50 planning for retirement
✓Self-employed individuals without company pension benefits
✓High-income earners in the 30% tax slab who want extra 80CCD(1B) deductions
✓Those who have exhausted the ₹1.5L Section 80C limit and want more tax savings
✓Government employees (for whom it is mandatory) and those planning to supplement their pension
✓Indian citizens aged 18–70 who want a government-backed retirement plan

Documents Required

✓PAN card (mandatory)
✓Aadhaar card for eKYC
✓Passport-size photograph
✓Bank account details (cancelled cheque or passbook)
✓Mobile number linked to Aadhaar for OTP verification

THE PROCESS

How to Open an NPS Account

Choose Account Type

Decide between Tier I (retirement account with tax benefits and lock-in) and Tier II (flexible account, no lock-in, no exclusive tax benefit). Most investors start with Tier I.

Select Pension Fund Manager

Choose from SEBI-registered pension fund managers — SBI, LIC, HDFC, ICICI, Aditya Birla, Kotak, UTI. Our advisor helps compare track records and select the best manager for your goal.

Complete eKYC & Registration

Submit PAN and Aadhaar, complete eKYC, upload photograph, and make the first contribution of at least ₹500. Your PRAN (Permanent Retirement Account Number) is generated within minutes.

Contribute & Track

Contribute any amount, anytime — through net banking, UPI, or auto-debit. Track your pension corpus, asset allocation, and fund performance from the NPS CRA portal or our platform.

Frequently Asked Questions

Can I withdraw from NPS before 60?

Yes, after 3 years, you can make partial withdrawals (up to 25% of your own contributions) for specific purposes like children's higher education, marriage, buying/constructing a house, or treating critical illnesses. Premature exit (before 60) requires using 80% of the corpus to buy an annuity; only 20% can be withdrawn as a lump sum.

What is the difference between Tier I and Tier II NPS accounts?

Tier I is the primary retirement account with a lock-in until age 60, and offers all the tax deduction benefits. Tier II is a voluntary savings account with no lock-in — you can withdraw anytime — but does not offer the 80CCD(1B) exclusive tax deduction (except for government employees). Tier II requires an active Tier I account.

How is the annuity component of NPS taxed?

The 40% used to purchase an annuity is tax-free at the time of investment but the monthly pension received from the annuity is taxed as ordinary income per your applicable slab. The 60% lump sum withdrawn at maturity is completely tax-free since the 2019 budget amendment.

What returns can I expect from NPS?

NPS equity funds (E tier) have historically delivered 10–12% CAGR over 10-year periods. Corporate bond funds (C tier) have delivered 8–9%, and government securities (G tier) around 7–8%. The blended return depends on your chosen asset allocation. Active choice allows up to 75% equity; auto-choice gradually reduces equity as you age.

Can I change my pension fund manager?

Yes. You can change your pension fund manager once per financial year — a feature unique to NPS. You can also change your investment scheme (asset allocation between E, C, G) twice per year. This flexibility lets you respond to changing performance without losing tax benefits or corpus continuity.