Features and Benefits of NPS

Tax benefit
Tax Efficient
Dual benefit up to Rs. 50,000 u/s 80CCD(1B) over & above the Rs. 1,50,000 u/s 80C (old tax regime)
Affordable & Cost Effective
Start investing as low as Rs. 500 per transaction and Rs. 1000 per year
Investment Flexibility
Switch between equity, corporate debt, Govt bonds & alternate funds (twice a year) & there is no upper limit
Flexibility in Withdrawal
Flexible Withdrawal
Early & partial withdrawals are available. Get lumpsum payment + monthly pension on maturity

Individual NPS

All Indian citizens aged between 18-65 years can invest in this central government pension scheme. NPS is portable across jobs and geographies.

Tax Benefits for Individual Subscribers:

  • Claim up to Rs.50, 000 tax deduction u/s 80CCD (1B) over and above the limit of 80CCE (under old tax regime)
  • Individuals are also eligible for tax exemption for contributions of up to 10% of basic salary u/s 80 CCD (1A) within Rs.150, 000 limit u/s 80 CCE (under old tax regime)
  • For the self-employed taxpayers, the tax- exempt contribution limit is 20% of the gross income with the maximum limit being capped at Rs. 1,50,000/- for a given financial year (under old tax regime)

Click here to open a NPS account.

Corporate NPS

Corporate NPS is available for Public and Private sector companies and is offered as an employee benefit along with Provident Fund, Gratuity, Superannuation or any other Pension Schemes.


Tax Benefits for Corporate Employees:

  •  Claim up to Rs.50, 000 tax deduction on employee contribution u/s 80CCD (1B) over and above the limit of 80CCE (under old tax regime)
  •  Employer’s contribution of up to 10% of Salary (Basic + Dearness Allowance) is deductible from taxable income under section 80CCD (2) within Rs.150, 000 limit under section 80 CCE (under old tax regime)

Please note: If the aggregate contribution made by an employer to an employee’s Provident Fund, NPS and an approved Super Annuation fund in a financial year exceeds Seven Lakh and Fifty Thousand Rupees, the excess amount will now taxable at the hands of the employee.


Tax Benefits for Corporate Employeer:

  • Corporates can avail of tax benefit u/s 36 (i) (IV) of Income Tax Act, 1961, on employer’s contribution towards NPS; up to 10% of salary (Basic + DA) can be deducted as ‘Business Expense’ from their Profit & Loss Account

Click here to open a NPS account.

Account Types and Charges

Account Types

NPS provides two types of accounts – A Tier-I account which is a withdrawal-restricted account and Tier-II account that is that is a voluntary, withdrawable account.

Please note: A Tier II account can only be opened if you have a Tier-1 account



Tier 1 Account

Tier 2 Account

 Types of Account




 Can be a Mix of

- Employer and Self
- Only Self
- Only Employer

 Only Self contribution

 Withdrawal Facility



 Tax Benefits



 Min Contribution for Account Opening

 INR 500

 INR 1000

 Min Amount of Subsequent Contribution

 INR 500

 INR 250

 Min Contribution/ Account Balance at the End of the Year 

 INR 1000

 INR 0

 Min Number of Contributions



 Frequency of Contributions



Fees and Charges



Service Charge

POP_HDFC Securities 

 Initial Subscriber Registration

 Rs. 200

 Initial Contribution

 0.25 % or Min: Rs. 20 and Max: Rs. 25,000

 All subsequent Contributions

 0.25 % or Min: Rs. 20 and Max: Rs. 25,000

 Any Non- Financial Transaction

 Rs. 20

 Mode of Deduction - Collected upfront from the first contribution



Service Charges


Service Charges (Kfintech)

 PRA Opening charges

 Rs. 40

 Rs. 39.36

 Annual PRA Maintenance cost per account

 Rs. 95

 Rs. 57.36

 Charge per transaction

 Rs. 3.75

 Rs. 3.36

   Mode of Deduction -  Collected through NAV cancellation/ Deduction   

 Custodian SHCIL

 Asset Servicing (Per Annum)



 Investment Management (Per Annum)

 Maximum Cap by PFRDA is 0.01% pa

 NPS Trust

 For Managing Expenditure

 0.005% of the fund value


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