National Pension Scheme (NPS)

National Pension Scheme (NPS)

NPS Registration 3 Step Process

Registeration of subscribers is a three step process on https://digitalseva.csc.gov.in/ Portal.

  • 1. To Register Fill Online Form and Upload KYC Document.
  • 2. Vle To Pay using CSC Wallet
  • 3. All Customers to e-sign the application

Subscriber will be given the option to e-Sign the form which eliminates the requirement to send the physical form.

Pre-requisites For Opening of NPS Account using PAN and KYC Document Upload:-

  • 1. Scanned Copy of Proof of Identity – Permissible size of Document Upload is 4KB – 2MB
  • 2. Scanned Copy of Proof of Address – Permissible size of Document Upload is 4KB – 2MB
  • 3. Scanned Copy of Cancel Cheque or Bank Passbook Copy – Permissible size of Document Upload is 4KB – 50KB
  • 4. Scanned Copy of Colour Photo – Permissible size of Document Upload is 4KB – 50KB
  • 5. Scanned Copy of Signature – Permissible size of Document Upload is 4KB – 50KB


Benefits OF NPS:-
1. Investments in NPS Tier I account qualify for tax deductions of up to Rs 1.5 lakh under Section 80CCD(1). NPS also qualifies for an exclusive tax deduction of Rs 50,000 under Section 80CCD(1B).
2. You get 10–14% interest rate on your contribution which is more than FD ( Fixed Deposit) or RD ( Recurring deposit).
3. You can partially withdraw 25% of total amount after 3 years.

Commission for VLE :-

1. On Each new NPS Account Opening:- Rs. 167
2. On Each Subsequent Contribution- Rs. 16

NPS Can be opened with a Minimum amount of Rs. 500

To Know more about NPS, read the article provide in below mention link.

http://pfrda.org.in//MyAuth/Admin/showimg.cshtml?ID=1404


For any query regarding NPS you can mail to [email protected] or call toll free 011 49754975 ext 228 To Avail NPS, type NPS in search option on Digiseva portal https://digitalseva.csc.gov.in/

National Pension System

National Pension System (NPS) is a voluntary, defined contribution scheme that is introduced by the Government of India, with the objective of extending the old age financial security to all the citizens who opt for this scheme.National Pension System (NPS) is an easily accessible, low cost, tax-efficient, flexible and portable retirement savings account. NPS is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens. It is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India.
Under the NPS, individuals can accumulate a pension corpus during their work life to meet their post-retirement financial needs. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.The greater the value of the contributions made, the greater the investments achieved, the longer the term over which the fund accumulates and the lower the charges deducted, the larger would be the eventual benefit of the accumulated pension wealth likely to be. .

Contributions + Investment Growth - Charges = Accumulated Pension Wealth

Benefits of National Pension System

  • It is voluntary - A Subscriber can contribute at any point of time in a Financial Year and also change the amount he wants to set aside and save every year.
  • It is Economical : NPS is one of the lowest cost investment products available.
  • It is flexible - Subscribers can choose their own investment options and pension fund.
  • It is portable - Subscribers can operate their account from anywhere, even if they change the city and/or employment.
  • It is regulated - NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust
  • It saves Additional Tax - Contributions made are eligible for additional tax deduction benefit on voluntary contribution of up to Rs. 50,000/-under section 80CCD (1B), over and above Rs.1,50,000/-u/s 80C.

Who should invest in NPS?

The NPS is a good scheme for anyone who wants to plan for their retirement early on and has a low-risk appetite. A regular pension (income) in retirement years will no doubt be a boon, especially for those individuals who retire from private sector jobs.A systematic investment like this can make a massive difference to the subscriber’s life post-retirement. In fact, Salaried people who want to make the most of the 80C deductions can also consider this scheme.

Top Fund Managers returns since inception

NPS Fund Managers Performance Report as on April 1, 2022
Return Since Inception - Tier I

Pension Fund

Scheme E

Scheme C

Scheme G

Scheme A

Aditya Birla Sun Life Pension Management Ltd.

13.28%

8.45%

8.13%

6.81%

HDFC Pension Management Co. Ltd.

15.30%

10.02%

9.49%

8.91%

ICICI Pru. Pension Fund Mgmt Co. Ltd.

12.48%

10.14%

8.72%

7.58%

Kotak Mahindra Pension Fund Ltd.

11.79%

9.79%

8.70%

7.44%

LIC Pension Fund Ltd.

13.02%

9.78%

10.42%

7.79%

SBI Pension Funds Pvt. Ltd

10.86%

10.18%

9.39%

9.84%

UTI Retirement Solutions Ltd.

12.27%

9.15%

8.41%

6.57%
Return Since Inception - Tier II
Pension Fund

 Scheme E Scheme C Scheme G

Aditya Birla Sun Life Pension Management Ltd.

13.22%

8.45%

7.30%

HDFC Pension Management Co. Ltd.

13.35%

9.19%

9.67%

ICICI Pru. Pension Fund Mgmt Co. Ltd.

10.98%

9.97%

8.81%

Kotak Mahindra Pension Fund Ltd.

11.22%

9.08%

8.44%

LIC Pension Fund Ltd.

10.79%

9.21%

10.68%

SBI Pension Funds Pvt. Ltd

10.68%

9.70%

9.39%

UTI Retirement Solutions Ltd.

11.06%

9.20%

9.06%

Tax Benefits under NPS

A tax exemption of Rs.1.5 lakh can be claimed on the employee’s and employer’s contribution towards the National Pension System (NPS). Tax benefits can be claimed under following sections of the Income Tax Act:

  • Rs. 1,50,000 as per section 80CCD(1), which comes under Section 80C, covers self-contribution. Salaried employees can claim a maximum deduction of 10% of their salary, while self-employed individuals can claim up to 20% of their gross income.
  • 80CCD(2), The maximum amount that an individual is eligible for deduction is either the employer’s NPS contribution or 10% of basic salary plus Dearness Allowance (DA).which is also a part of Section 80C, covers the employer’s contribution towards NPS.
  • Individual can claim Additional tax benefit on NPS investment of Rs. 50,000 for any other self-contributions under Section 80CCD(1B).

Therefore, individuals can claim up to Rs.2 lakh as tax benefits under NPS.

Exits and Withdrawals

A. Partial Withdrawal

Subscriber can withdraw up to 25% of the contribution deposited. In the entire life span, up to 3 withdrawals can be made – the first withdrawal can be exercised after 3 years of account opening. 2nd and 3rd withdrawals can be exercised any time after the previous withdrawal.

The partial withdrawal can opt for the specified reason such as higher education, marriage of children, construction of house, establishing own venture, skill development, medical and incidental expenses arising out of the disability or incapacitation suffered by the subscriber or treatment of specified illness.

B. Exit.

i. On attaining 60 years of age:

  • Subscriber can withdraw 60% of the total accumulated amount as a lump sum which is completely tax free.
  • At least 40% of the accumulated pension corpus will be utilised to purchase an annuity through which subscriber will get the monthly pension.
  • In case, the total pension amount is less than or equal to Rs.5,00,000 on the date of retirement; subscriber can withdraw the entire amount as a lump sum.

ii. Before 60 years of age:

  • Subscriber can withdraw 20% of the total accumulated amount as a lump sum.
  • At least 80% of the accumulated pension wealth will be utilised to purchase an annuity through which subscriber will get the monthly pension.
  • In case, the total pension amount is less than or equal to Rs.2,50,000 on the date of exit; subscriber can withdraw the entire amount as a lump sum.

iii. Death

  • In case of unfortunate death of subscriber, the accumulated corpus will be given to the nominee.

Grievance Redressal

The Subscriber has a right to seek redressal for the NPS services offered by CSC E-Governance Service India Ltd. The NPS subscriber can send the complaint to [email protected]. If the subscriber is not satisfied with the resolution or the issue in not resolved, the Subscriber may write to the Compliance Officer at [email protected].

Charges under NPS

Point of Presence (POP) Charges

POP charges are either taken upfront from the customer or recovered from the contribution amount deposited by the customer, as shown below:

Charge Head Charges
Account Opening Rs.200
Contribution Processing 0.50% subject to min Rs.30 and Max Rs.25,000
Non Financial Transaction Processing Rs.30
Persistency (Applicable for Active Retail Customer with more than 6 months tenure with POP) Rs.50/- per annum for annual contribution Rs.1000 to Rs.2999.
Rs.75/- per annum for annual contribution Rs.3000 to Rs.6000.
Rs.100/- per annum for annual contribution above Rs.6000.

Central Record Keeping Agency (CRA) Charges

CRA recovers charges by cancelling units from customer’s NPS account on quarterly mode.
Charge Head Charges for KFintech CRA

PRAN Generation

- Physical

Rs.39.36

- ePRAN Kit

Rs. 4.00

Annual Maintenance

Rs.57.63

Financial Transaction Processing

Rs.3.36

Other Intermediaries Charges

Charges for Custodian and NPS Trust are recovered on daily basis by adjusting NAV.
Intermediary Charge Head Charges (Annual)
Custodian Custodian Fee 0.0032%
NPS Trust Reimbursement of Expenses 0.005%

Pension Fund Charges

Slabs of AUM managed by the Pension Fund Maximum Investment Management Fee (IMF)
Upto 10,000 Cr. 0.09%*
10,001 – 50,000 Cr. 0.06%
50,001 – 1,50,000 Cr. 0.05%
Above 1,50,000 Cr. 0.03%
*UTI Retirement Solutions Ltd charges a fee of 0.07% under this slab.

National Pension NPS Scheme Details in Hindi



NPS



NPS Presentation



NPS Chart





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