Ministry of Finance
National Pension System (NPS)
Tax deduction up to ₹1.5 lakh under 80CCD(1) + additional ₹50,000 under 80CCD(1B) — total ₹2 lakh tax saving per year; 60% tax-free withdrawal at retirement; remaining 40% invested in annuity for monthly pension; low-cost, professionally managed market-linked growth over long term
Any frequency (minimum ₹500 per contribution; minimum ₹1,000/year for Tier I)
National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority) under the Ministry of Finance. Any Indian citizen aged 18–70 years — including NRIs and OCI card holders — can open an NPS account. Tier I (retirement account) offers significant income tax deductions under Section 80CCD(1) up to ₹1.5 lakh plus an additional exclusive ₹50,000 under Section 80CCD(1B). At 60 years, subscribers can withdraw 60% of the corpus tax-free and must use the remaining 40% to buy an annuity (monthly pension). NPS is managed by government-approved fund managers including SBI, HDFC, ICICI, Kotak, and LIC.
Am I Eligible?
Quick check — answer 3 questions
Is your age between 18 and 70 years?
Is your annual family income under ₹1 Cr?
Do you live in India?
Benefit Details
Tax deduction up to ₹1.5 lakh under 80CCD(1) + additional ₹50,000 under 80CCD(1B) — total ₹2 lakh tax saving per year; 60% tax-free withdrawal at retirement; remaining 40% invested in annuity for monthly pension; low-cost, professionally managed market-linked growth over long term
Provided by Central Government
Any frequency (minimum ₹500 per contribution; minimum ₹1,000/year for Tier I)
Eligibility Criteria
Indian citizen (resident or NRI or OCI) aged 18–70 years; any employment type — salaried, self-employed, professional, business owner, or retired professional re-joining before 70; must have a valid Aadhaar, PAN, and active bank account; no income limit; existing EPF members can also join NPS voluntarily
18 to 70 years
Up to ₹1 Cr / year
Rural & Urban (Both)
Required Documents
💡 Tip: Keep original documents and 2 photocopies ready. Self-attest all photocopies.
How to Apply
Open NPS Account Online (eNPS)
onlineGo to enps.nsdl.com or enps.karvy.com → click "Open NPS Account" → select citizen type (Indian/NRI/OCI) → enter PAN, Aadhaar, and mobile → Aadhaar-based eKYC via OTP → fill investment details (fund manager, asset allocation) → upload photo and signature scan → pay ₹500 first contribution → PRAN (Permanent Retirement Account Number) generated instantly.
Open NPS at Bank/Post Office (Offline)
offlineVisit any NPS Point of Presence (POP) — which includes almost all banks and post offices → ask for "NPS Account Opening" → fill Form S1 → submit Aadhaar, PAN, photo, and cancelled cheque → make initial contribution → PRAN card mailed to your registered address.
Make Regular Contributions
onlineContribute any amount any time to your Tier I NPS account (minimum ₹1,000/year). Contributions are invested in a mix of equity, corporate bonds, and government securities by your chosen pension fund manager. Tier II allows free withdrawals anytime but no tax deduction.
Claim Tax Deduction
online / offlineAt the end of each financial year: declare NPS contributions to your employer for Form 16 (salaried) or claim in ITR (self-employed). Deduction under 80CCD(1): up to ₹1.5 lakh. Additional ₹50,000 under 80CCD(1B) — over and above 80CCE limit. Employer NPS contribution: additional 10% of basic salary deduction under 80CCD(2).
Withdraw at Retirement
onlineAt 60 years: submit withdrawal/exit request on CRA portal → withdraw up to 60% of corpus as lump sum (completely tax-free) → compulsorily annuitize at least 40% to purchase monthly pension (annuity) from an Annuity Service Provider registered with PFRDA → monthly pension credited to your bank account.
Frequently Asked Questions
Quick Summary
Related Schemes
Pradhan Mantri Shram Yogi Maandhan (PM-SYM)
Guaranteed monthly pension of ₹3,000 after age 60; government matches your monthly contribution rupee for rupee
UP Vridhavastha Pension Yojana (Old Age Pension)
₹1,000 per month pension paid quarterly (₹3,000 per installment) via Direct Benefit Transfer to Aadhaar-linked bank account for low-income senior citizens of Uttar Pradesh
Atal Pension Yojana (APY)
Guaranteed monthly pension of ₹1,000–₹5,000 per month after age 60; spouse receives same pension after subscriber's death; nominee receives lump sum return of corpus on death of both subscriber and spouse
Shravan Bal Seva Rajya Nivruttivetan Yojana (Maharashtra)
₹1,500 per month (paid quarterly as ₹4,500) directly to Aadhaar-linked bank account via DBT for BPL senior citizens aged 65+ years in Maharashtra
⚠️ Disclaimer: Information is compiled from official government sources for guidance purposes. Eligibility and benefits may vary. Always verify with the official portal or nearest government office before applying.
Still confused? Get human help.
Connect with a verified local partner who can assist you in person.