How about saving an extra Rs. 15,600 in taxes?
Yes you heard it right you can now invest in the National Pension Scheme (NPS) and save another Rs.15,600 in taxes over and above Scripbox tax saver and section 80C.
NPS is regulated by PFRDA, with transparent investment norms.
60% of corpus withdrawn in lump sum is exempt from tax.
You will receive tax proof within 2 working days in your email id.

The Process?
Quite simple.
Benefits of investing in NPS
FAQ
How can I create an NPS account?
Click here to create your NPS account. You will be taken to HDFC Pension's website.
1. Link your mobile number, PAN number and Aadhar number to the account
2. Validate your registration using the OTP received at your registered mobile number for a successful KYC verification
3. On successful registration, Permanent Retirement Account Number (PRAN) will be received. PRAN is mandatory to login to the National Pension System account.
1. Link your mobile number, PAN number and Aadhar number to the account
2. Validate your registration using the OTP received at your registered mobile number for a successful KYC verification
3. On successful registration, Permanent Retirement Account Number (PRAN) will be received. PRAN is mandatory to login to the National Pension System account.
How will I get the Tax proof?
You will get the tax proof in your registered email id within 2 working days.
What happens on maturity?
Withdrawal on maturity (or on attaining the age of 60): The Subscriber can withdraw a maximum of 60% of the pension wealth as lump-sum and is required to transfer a minimum of 40% of the pension wealth to Annuity. Where the accumulated pension wealth is less than Rs.2 lakhs, the entire amount can be withdrawn as lump-sum.
Who can subscribe to NPS?
A citizen of India, whether resident or non – resident including OCI can join the NPS subject to following conditions:
1. Subscriber should be between 18 – 65 years of age as on the date of submission of her application.
2. Subscriber should comply with the prescribed Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form for NPS.
1. Subscriber should be between 18 – 65 years of age as on the date of submission of her application.
2. Subscriber should comply with the prescribed Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form for NPS.
What is the current interest rate of NPS?
NPS does not give a guaranteed interest rate. The growth rate depends on the fund manager. Historically, HDFC pension has given 9%-12% interest based on asset class.
What are the tax benefits under NPS?
Subscriber gets the following tax benefits on contributions:
1. Investment up to Rs. 50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961.
2. Up to 60% of Corpus withdrawn in lump sum is exempt from tax.
3. Balance amount invested in annuity is also fully exempt from tax.
1. Investment up to Rs. 50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961.
2. Up to 60% of Corpus withdrawn in lump sum is exempt from tax.
3. Balance amount invested in annuity is also fully exempt from tax.
Can I exit from NPS after 1 year?
No one cannot exit the NPS scheme after one year of holding the account. NPS subscribers can exit the scheme on superannuation, upon death and premature exit. The premature exit is only allowed after the subscriber has completed ten years from the date of investment. However, 80% of the corpus has to be used to purchase annuity so that the subscriber can earn a monthly pension. The remaining 20% can be withdrawn in lumpsum.
Who is the regulator for NPS?
PFRDA is the regulator for NPS. Pension Fund Regulatory and Development Authority (PFRDA) is an Authority set up by the Government of India through the PFRDA Act 2013 to promote old age income security by establishing, regulating and developing pension funds to protect the interest of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.
Can an NRI open an NPS account?
Yes, a NRI can open an NPS account. Contributions made by NRI are subject to regulatory requirements as prescribed by RBI and FEMA from time to time. If the subscriber's citizenship status changes, his/ her NPS account would be closed
What are the NPS charges?
Below are the charges mentioned:
1. Initial subscriber registration - Rs.200
2. e-NPS (for subsequent contribution) - 0.10% of the contribution (Minimum Rs. 10 & Max Rs. 10,000)
3. Investment Management Fee - 0.01% p.a.
1. Initial subscriber registration - Rs.200
2. e-NPS (for subsequent contribution) - 0.10% of the contribution (Minimum Rs. 10 & Max Rs. 10,000)
3. Investment Management Fee - 0.01% p.a.
What is Annuity?
An annuity is a financial instrument which provides for a regular payment of a certain amount of money on monthly/quarterly/annual basis for the chosen period for a given purchase price or pension wealth. In simple terms it is a financial instrument which offers monthly/quarterly/annual pension at a specified rate for the chosen period.
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