National Pension System (NPS), administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA), is a voluntary, defined contribution retirement savings scheme. Its ultra-low cost (0.01% p.a; lowest management fee in world), flexible, simple, & portable retirement solution.
Transfer of Superannuation Fund to NPS is tax free u/s 10 (13)-(V) of IT Act 1961.
Unique Salient Features
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- A citizen of India, including NRIs between the age of 18-65 years can join NPS –
- Minimum contribution of Rs.1000 in the FY.
- Unique Permanent Retirement Account Number (PRAN) with seamless portability across different Jobs / Locations.
- Tax Benefits:
- Individuals’ contribution upto Rs. 50,000 is deductible from taxable income u/s 80 CCD (1B) over and above Rs. 1.50 Lacs u/s 80 C of IT Act 1961
- Over and above this, Employer’s contribution upto 10% of Basic + (DA) is deducted from taxable income of the employee u/s 80 CCD (2) and employer u/s 36 (i) (iv-a) of IT Act 1961 with no ceiling on amount
- NAV based product with market determined returns.
- Withdrawal of 40% of the Corpus is tax exempt
- Unmatched lowest cost of Investment (ranges upto 0.75% compare to MF / ULIP / Superannuation plans which ranges more than 2%).
- Customised Investment options with flexibility of switching over the schemes (Equity/Corporate Bonds/Govt. Securities) twice in FY as well as the Fund Manager once in FY.
- Online Access to your NPS account – 24 X 7 X 365 (Web & Tele) to CRA
- NPS account can be opened by using Online or Offline platform like
- Online – i) SBI – e-Services through the link available at www.onlinesbi.com
- ii) eNPS through the link available at www.npscra.nsdl.co.in / www.kcra.karvy.com
- Offline – Visit any branch of State Bank of India
- A citizen of India, including NRIs between the age of 18-65 years can join NPS –