We all know that the combined maximum limit for section 80C, 80CCC, and 80CCD (1) deduction is Rs 1, 50,000, which can be availed. Hence there is no extra tax benefit if one invests more than Rs 150000 in these sections.

NPS provides an opportunity to have extra deduction up to Rs 50000.00 in case of self-contribution u/s section 80CCD (1B). Contributions to Atal Pension Yojana are also eligible.

NPS stands for the new National Pension Scheme launched by the Government of India. The scheme is handled by the Pension Fund Regulatory and Development Authority (PFRDA).

It is a retirement savings scheme where both employees and employers contribute towards building wealth which is payable to the employee at the time of retirement.

The scheme is particularly designed to encourage systematic savings among employees of both central and state as well as among common citizens( self employed).

The scheme was launched on 1st January, 2004 with a purpose of reforming pension in India, and it is the cheapest market-linked retirement plan available in India.

It is a voluntary scheme and open for all India citizens falling between the age group of 18 to 65 years.

1. The scheme comes with a lot of flexibilities which allow you to choose your investment options.

2. You can also switch between different investments funds.

3. The NPS account can be operate from anywhere in India.

4. The plan involves transparent investment norms.

5. It helps you plan your retirement and you can be sure of receiving assured returns at retirement.

6. It may be particularly helpful for professional and business class, who will left with no pension after the end of their working life.

Under the NPS, an individual can invest in different pension funds.

The NPS offers three different types of funds wherein you can invest and get good returns at retirement. In case, you don’t mention your preference or choice of fund at the time of registration, your investments will be invested in the default funds handled by the Pension Fund Regulatory and Development Authority (PFRDA).

These funds are manage by professional fund managers.

Under the National Pension Scheme, a subscriber can open two accounts – Tier-I and Tier-II.

i) Tier-I is the primary account which a subscriber needs to open to be eligible for opening the Tier- II account.

The Tie- I account does not allow premature withdrawal unless the subscriber reaches the age of 60.

ii) The Tier-II account allows withdrawal as and when the subscriber needs fund.

A subscriber needs to make a minimum contribution Rs. 6000 per year. The minimum one time contribution is Rs. 500. These contributions are applicable for Tier-I accounts.

Similarly, for Tier-II accounts, a subscriber needs to make a minimum contribution of Rs. 2,000 annually, and Rs. 250 at one time.

Funds can be contribute either via cheque or cash or through internet banking.

Notmal KYC document like Photo, PAN, Adhar etc required as Proof of identity and proof of address.

One may also use following link for more details and open online NPS ( e-nps) account:

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