Tax-saving &
Retirement planning

Regulated by Pension Fund Regulatory & Development Authority, National Pension System
safeguards the day you retire and the years to come after.

Primary Attributes
of National Pension System

Reduce Your
Tax Liability

Reduce your tax liability by upto
Rs. 16,800 every year.


Historical Investment return ranges
between 9%-12%

Retirement Solution

NPS is a voluntary and long-term retirement
savings System that helps individuals build a
retirement corpus over their working years.

Flexibility in

Subscribers have the flexibility to choose their
contribution amount and frequency, which can be
regular or irregular, as long as the minimum annual
contribution requirements are met.

Two Tiers

NPS consists of two tiers - Tier I and Tier II.
Tier I is a mandatory pension account with withdrawal
restrictions until retirement, while Tier II is an optional
investment account with more flexibility for withdrawals.

Choice of
Investment Allocation

Subscribers can choose between three investment
options - Active Choice (where they decide the
allocation among different asset classes), Auto
Choice (where the allocation changes based on
the subscriber's age), and Conservative Life Cycle
Fund (a pre-defined allocation based on age).

Wide Range of
Asset Classes

NPS allows investments in various asset classes
including equity, government securities, corporate
bonds, and alternative assets, offering a diversified
investment portfolio.

Regulated by PFRDA

The Pension Fund Regulatory and Development
Authority (PFRDA) regulates and oversees the NPS
to ensure transparency and protect the interests of

Portable Account

NPS accounts are portable across employers
and locations, giving subscribers the freedom to
continue contributing even if they change jobs or

Tax Benefits

Contributions to NPS are eligible for tax benefits
under Section 80CCD(1), and an additional deduction
of up to ₹50,000 is available under Section 80CCD(1B)
of the Income Tax Act.

Tier I Withdrawal

While partial withdrawals are allowed for specific
purposes like higher education, purchasing a home,
or medical treatment, Tier I withdrawals before
retirement are subject to certain conditions and

Annuity Purchase
at Retirement

At retirement, a portion of the accumulated corpus
(maximum 60%) can be withdrawn as a lump sum,
and the remaining must be used to purchase an
annuity that provides regular pension payments.

Choice of
Annuity Provider

Subscribers have the option to choose from
various annuity providers and annuity options,
allowing them to customize their pension payouts
based on their needs.

and Self-Employed

NPS is suitable for both salaried individuals and
self-employed individuals, including professionals
and entrepreneurs, looking for a structured retirement
savings solution.

Online Account

Subscribers can manage their NPS accounts
online, including tracking contributions, investment
performance, and making changes to investment

Regular Statements

NPS provides regular statements and updates to
subscribers, offering transparency and visibility into
their investment progress.

Exit Options

Apart from annuity purchase, subscribers can also
opt for a partial lump-sum withdrawal and receive a
regular pension with the remaining corpus.

NPS VS Alternative Retirement
Returns Comparison

National Pension
System Calculator

Check how your tax-saving National Pension
System investment can contribute to your
retirement requirement.

Frequently Asked Questions
National Pension System

What is National Pension System?

National Pension System (NPS) is a pension cum investment System launched by the Government of India to provide old age security to its citizens. It brings an attractive long term saving avenue to effectively plan your retirement through safe and regulated market-based returns. The System is regulated by Pension Fund Regulatory and Development Authority (PFRDA).

Why should I open an NPS Account?

Opening an NPS account has its own advantages as compared to other pension products available. Here are its features:

  1. Low cost product
  2. Tax breaks for Individuals, Employees and Employers
  3. Attractive market-linked returns
  4. Easily portable
  5. Professionally managed by experienced Pension Funds
  6. Regulated by PFRDA, a regulator set up through an act of Parliament
Who can invest in NPS?

Any citizen of India, aged between 18-65 years as on the date of submission of his/her application can invest in NPS. The citizens can join NPS either as individuals or as an employee-employer group(s). However, OCI (Overseas Citizens of India), PIO (Person of Indian Origin) card holders and HUFs are not eligible for opening an NPS account.

Currently, investment in NPS on our platform is available for Indian citizens who are resident and pay tax in India.

What are the tax benefits under NPS?

User can make investment of up to ₹2,00,000 to be eligible for tax saving of ₹62,400

Investment of up to ₹50,000 to be eligible for tax deduction u/s 80CCD (1B) - Tax saving of ₹15,600

Investment of up to ₹1,50,000 to be eligible for tax deduction u/s 80CCD (1) - Tax saving of ₹46,800

Tax saving of ₹46,800 under u/s 80CCD (1) is an alternative to saving of ₹46,800 on ₹1,50,000 under 80C

What are the investment choices available in NPS?

NPS offers you two approaches to invest in your account:

Active choice

Auto choice

In Active choice, Subscriber selects the allocation percentage in asset classes,however, in Auto choice, funds are automatically allocated amongst asset classes in a pre-defined matrix, based on the age of the subscriber. After selection of pension fund manager, Subscriber also has to exercise the choice of investment.

Active choice:Unlike traditional investment products, NPS offers you the flexibility to design your own portfolio. Depending on your risk appetite, you can design your portfolio by allocating Funds amongst available four asset classes. This is called Active Choice. Following are the four asset classes are available under Active choice:

  1. Equity or E
  2. Corporate Debt or C
  3. Government Securities or G
  4. Alternative Investment Funds or AIF

Auto Choice:At times designing your portfolio can be a little delicate and time consuming. NPS gives you the flexibility to opt for a dynamic and automatic allocation of your portfolio in case you do not want to exercise an Active choice. This option is called the Auto choice. In Auto choice, your money will be invested in asset classes - E, C and G - in defined proportions based on your age. As an individual's age increases, exposure to Equity and Corporate Debt is gradually reduced and that in Government Securities is increased. Depending upon the risk appetite of the subscriber, there are three different options available within Auto Choice-Aggressive, Moderate and Conservative.

What are Tier 1 & Tier 2 accounts in NPS?

Under NPS accounts, there are two types of accounts - Tier I & II.

Tier I account is mandatory for investing in NPS and all the tax-saving benefits are applicable on this account type. However, it is a restricted and conditional withdrawable retirement account which can be withdrawn only upon meeting the exit conditions prescribed under NPS.

Tier-II account is optional in nature and is available as an add-on to any Tier-1 account holder. Subscribers are free to withdraw their savings from this account whenever they wish, however, there are no tax benefits on investing in a Tier II account. Currently users can invest only in Tier I accounts on our Platform.

Can I have more than one NPS account?

No, multiple NPS accounts for a single individual are not allowed as NPS is fully portable across sectors and locations, hence, users need not apply for a new account incase of change in job or location.

Will the government contribute to my NPS account?

NPS is a Government of India initiative to provide old age security to the citizens of India, however, the Government will not be making any contribution to your NPS account. The contribution in an NPS account is made only by the individual under the "all citizens of India" model or by the employee-employer group under the corporate model. Currently you can invest only under "all citizens of India" model on our Platform

What is the lock in period for NPS?

NPS is a retirement product and investment is done by users with an objective of saving for the post retirement years. As per PFRDA Regulations 2015, subscriber can withdraw money as per following conditions:

Upon SuperannuationWhen a subscriber reaches the age of 60 years of age, he or she can withdraw up to 60% of the accumulated corpus as lump sum and remaining share is invested for regular monthly/quarterly pension for a period as chosen by the user. If the total accumulated pension corpus is less than or equal to ₹5 lakh, subscribers can opt for 100% lump sum withdrawal.

Premature Exit-In case a need arises for early withdrawal, users can opt for premature exit after completing 10 years in NPS. Users can withdraw up to 20% of the accumulated corpus as a lump sum and the remaining share is invested for regular monthly/quarterly pension for a period as chosen by the user. If the total corpus is less than or equal to ₹2.5 lakh, subscribers can opt for 100% lump sum withdrawal.

Upon Death of Subscriber - The entire accumulated pension corpus (100%) would be paid to the nominee/legal heir of the subscriber.

Can I withdraw some amount during my tenure in NPS and still continue to subscribe to my NPS Account?

Yes, NPS Subscriber can withdraw a certain amount out of his own contribution. It is considered as partial withdrawal under NPS:

Following are the conditions of conditional withdrawal:

  1. Subscriber should be in NPS at least for 3 years
  2. Withdrawal amount will not exceed 25% of the contributions made by the subscriber
  3. Withdrawal can happen a maximum of three times during the entire tenure of subscription.
  4. Withdrawal is allowed only against the specified reasons, for example; Higher education of children Marriage of children For the purchase/construction of residential house (in specified conditions) For treatment of critical illnesses
How is the annuity income taxed?

NPS qualifies as an EEE product, where your investment is completely tax-free at all stages. Your invested amount, return earned and maturity withdrawal are all completely tax-free.But your Annuity Income will bring taxation as per your Income Tax slab.