National Pension System (NPS) - Complete Investment Guide
How to open NPS account online, contribution rules, tax benefits under 80CCD, and withdrawal rules at retirement.
National Pension System (NPS)
NPS is a voluntary, defined contribution retirement savings scheme regulated by PFRDA. It allows subscribers to contribute during their working life and build a retirement corpus. At retirement, a part of the corpus can be withdrawn as lump sum and the remaining is used to purchase an annuity.
Account Types
- Tier-I: Retirement account (mandatory, restricted withdrawal)
- Tier-II: Savings account (voluntary, flexible withdrawal)
Eligibility Criteria
Indian citizens aged 18-70 years. NRIs are also eligible. Must comply with KYC norms.
Benefits
Tax deduction up to Rs 2 lakh (1.5L under 80C + 50K under 80CCD(1B)). Market-linked returns. Low fund management charges. Partial withdrawal allowed.
Documents Required
PAN Card, Aadhaar Card, Bank Account details, Passport-size photograph, Cancelled cheque
How to Apply
1. Visit enps.nsdl.com or eNPS portal 2. Click "Registration" for new subscriber 3. Enter Aadhaar/PAN for e-KYC 4. Fill personal and nomination details 5. Choose Pension Fund Manager and investment mix 6. Make initial contribution (min Rs 500) 7. Receive PRAN
Official Links
https://www.npscra.nsdl.co.inFrequently Asked Questions
Who is eligible for National Pension System (NPS)?
Indian citizens aged 18-70 years. NRIs are also eligible. Must comply with KYC norms.
What documents are required?
PAN Card, Aadhaar Card, Bank Account details, Passport-size photograph, Cancelled cheque
How to apply?
1. Visit enps.nsdl.com or eNPS portal 2. Click "Registration" for new subscriber 3. Enter Aadhaar/PAN for e-KYC 4. Fill personal and nomination details 5. Choose Pension Fund Manager and investment mix 6. Make initial contribution (min Rs 500) 7. Receive PRAN