Retail NPS
Retail NPS
Any citizen of India, aged between 18 and 85 years, willing to join NPS directly under the All-Citizens Model and not through an employer, is considered a Retail Subscriber. Any self-employed or salaried individual can open an NPS account, provided he/she fulfils the prescribed eligibility criteria and KYC requirements, and contributes periodically during the working years to build a sizeable retirement corpus and draw a pension after retirement.
Eligibility
Any Citizen of India (Resident, Non-Resident, or OCI)
Age between 18 and 85 years
KYC Compliant
Why Join Retail NPS?
Regular pension on retirement
Low-cost pension scheme
Eligible tax benefits on contributions
Risk spread across asset classes
Portability across jobs and locations
Withdrawals for emergencies
Tax-free withdrawals on exit
Tax Benefits
NPS offers multiple tax benefits on contributions as well as withdrawals .
Tax Benefits On Contributions
For self-employed individuals
20% of gross income invested in NPS and subject to a maximum of ₹1.5 lakh is available for deduction under section 80CCD(1).
Additionally, invest up to ₹50,000/- and avail tax deduction under section 80CCD(1B). This benefit is over and above ₹1.5 lakh limit of Section 80CCE.
For salaried individuals:
10% of Salary (Basic and DA) invested in NPS subject to a maximum of ₹1.5 lakhs is available for deduction under section 80 C.
Additionally, invest up to ₹50,000/- and avail tax deduction under section 80CCD(1B). This benefit is over and above ₹1.5 lakh limit of Section 80CCE.
*Kindly note the above-mentioned tax benefits are available only under the Old Tax Regime.
Tax Benefits On Withdrawals & Exit
Partial Withdrawals: Up to 25% of self-contributed amount allowed as partial withdrawal for pre-defined emergencies, shall be tax-exempt
Withdrawals on premature exit: Up to 20% of accumulated corpus is eligible for withdrawal upon premature exit shall be tax-exempt
Withdrawals upon attaining Superannuation or exit on maturity: Entire corpus amount is tax free. Maximum 60% allowed as withdrawal with remaining 40% to be invested in annuity for receiving your pension.
Annuity Investment: There is no GST applicable on NPS corpus that is invested in Annuity plan provided by PFRDA-approved insurance companies, for receiving a pension.
How to Join?
- Fill out the registration form online and upload documents.
- Make initial payment of ₹500/- or more and get your NPS Account activated.
- This will generate PRAN (Permanent Retirement Account Number) which is unique, i.e. , an individual can have only one PRAN number.
- After a day, the subscriber gets a Login ID to his account held by the CRA. Using this login ID, subscriber can view all details and history of his/her account.
- Mobile-linked Aadhaar Card or DigiLocker
- Bank account details (account number, IFS Code, and bank name; ensure that the bank account is in name of the individual registering for NPS)
- scanned copy of cancelled cheque or bank passbook
- Scanned copies of your PAN Card and your signature
- Ensure your UPI or Internet Banking is active (for payment purposes)
