National Pension System

National Pension System (NPS) is an investment cum pension scheme initiated by Government of India to provide old age security and pension of all citizen of India. The NPS was rolled out for all citizens of India on May 01, 2009. The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA).

Who Can Join

  • A citizen of India including NRI & OCI.

  • Age between 18 years and 70 years at the time of submission of application

  • Complied with KYC (Know Your Customers) norms

Feature of NPS

  • Prudently regulated by PFRDA

  • Issuance of PRAN (Permanent Retirement Account Number) Card

  • Portable across jobs and geographies

  • Extremely low cost of investment

  • Choice of funds, fund managers and investment oprions

  • Tax benefit on Tier I contributions

  • Unmatched investment freedom

  • Online accessibility of account details

  • No TDS deducted on withdrawal amount

Other Features

  • Tax Benefit on Tier-I Contribution

    • Own Contribution: Contribution made by an individual to the extent of Rs. 1,50,000 p.a. is eligible for deduction (This deduction is subject to the overall ceiling of Rs. 1,50,000 p.a. specified u/s 80CCE of the Income Tax Act). Further maximum deduction allowable under this section cannot exceed 10% of salary (Basic + DA). An additional contribution of Rs. 50,000 p.a. is eligible for an additional deduction of Rs. 50,000 p.a. under Section 80 CCD (1B).

    • Employer Contribution: Contribution made by the employer of the subscriber to the extent of 10% of salary (Basic and DA) is additionally eligible for deduction u/s 80CCD (2) of Income Tax Act, 1961 without any upper limit in terms of value. This benefit is available to subscribers under corporate model only when the employer deducts employer contribution from salary.

  • Freedom to

    • Switch amongst Funds, Fund Managers and Investment Options

    • Increase / decrease the investment amount for the year

    • Change the frequency of contribution from Kotak Savings account

    • Select different asset allocation, scheme preference and pension fund manager for Tier I and Tier II accounts

    • Nominate different nominees for their Tier I and Tier II accounts