National Pension Scheme

National Pension Scheme (NPS)

NPS full form stands for National Pension Scheme. NPS is an initiative undertaken by the Government of India with the aim of providing retirement benefits to all the citizens of India. NPS seeks to inculcate the habit of saving for retirement amongst the citizens.

Here, we will cover the objectives of NPS, types of NPS accounts, interest rates and benefits. Before that, let us first understand the National Pension Scheme in brief.

Benefits of NPS Account

i) Low Cost:-

NPS is considered t​o be the world’s lowest cost pension scheme. Administrative charges and fund management fee are also lowest.​

ii) Simple:-

All applicant has to do is to open an account with any one of the POPs being run through all Head Posts Offices across india and get a Permanent Retirement Account Number(PRAN)

iii) Flexible:-

Applicant can choose his/her own investment option and Pension Fund or select Auto choice to get better returns.

​iv) Portable:-

Applicant can operate an account from anywhere in the country and can pay contributions through any of the POP-SPs irrespective of the POP-SP branch with whom the applicant is registered, even if he/she changes his/her city, job etc and also make contributio​n through eNPS. The accou​nt can be shifted to any other sector like Government Sector, Corporate Model in case the subscriber gets the employment.

Tax benefit:

Eligible for tax deduction up to 10 % of gross income under Sec 80 CCD (1) with in the overall ceiling of Rs. 1.50 lacs under Sec 80 CCE. Subscriber is allowed deduction in addition to the deduction allowed under Sec. 80CCD(1) for additional contribution in his NPS account subject to maximum investment of Rs. 50,000/- under sec. 80CCD 1(B)

​*Tax benefits would be applicable as per the Income Tax Act as amended from time to time

We have collaboration with
ICICI Prudential Pension Funds for NPS. Click to have NPS onboarding.