National Pension Scheme
National Pension Scheme (NPS), a government-sponsored pension scheme, was launched in January 2004 for government employees. It was opened to all sections in 2009. A subscriber can contribute regularly in a pension account during her working life, withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
Top Performing NPS Schemes
By Trailing Returns
- Scheme Name
- NAV
- Trailing returns (in %)
- 1 Year
- 3 Year
- 5 Year
- Return Rating
- Risk Rating
- UTI Retirement Solutions - Scheme E - TIER I
- 64.33
- 36.65
- 19.77
- 16.45
- ICICI Prudential Pension Fund - Scheme E - TIER I
- 65.67
- 36.65
- 20.05
- 16.83
- ICICI Prudential Pension Fund - Scheme E - TIER II
- 51.93
- 36.11
- 20.03
- 16.89
Most Consistent NPS Schemes
- Scheme Name
- NAV
- AUM
(Rs. Cr) - Return
Rating - Risk
Rating - Consistency
Category Average Returns
- Category Name
- Weighted Avg Return (in %)
- 1 M
- 3 M
- 6 M
- 1 Y
- Quartely Category Discrete Returns
- Yearly Category Discrete Returns
- Scheme E TIER I
- 2.31
- 6.66
- 22.83
- 33.01
- Scheme E TIER II
- 2.29
- 6.57
- 22.68
- 32.84
- Scheme - Central Govt
- 0.03
- 2.47
- 7.30
- 10.47
- Scheme - State Govt
- 0.04
- 2.49
- 7.31
- 10.45
- Atal Pension Yojna
- 0.03
- 2.50
- 7.30
- 10.44
FAQs on NPS
What is National Pension System (NPS)?›
Who can join NPS?›
Can a Non Resident Indian (NRI) join NPS?›
How do I join NPS?›
How can I find POPs near me?›
What are the documents needed for opening an NPS account?›
What is a Permanent Retirement Account Number (PRAN)?›
What are Tier-I and Tier-II accounts›
Can I have more than one NPS account?›
What is the minimum contribution in NPS?›
What will happen if I don't make the minimum contribution?›
Will the government also contribute to my NPS account?›
Who manages the money invested in NPS?›
What are the investment choices available in NPS?›
- 1. Active Choice: This option allows the investor to decide how the money should be invested in different assets.
- 2. Auto choice or lifecycle fund: This is the default option which invests money automatically in line with the age of the subscriber.
What are the investment options available under Active Choice?›
Can I change my investment choices?›
Can I change my scheme and pension fund managers?›
Can I have different pension fund managers and investment option for Tier I and Tier II account?›
What are the tax benefits available for NPS?›
- 1. An employee's own contribution is eligible for a tax deduction --up to 10 per cent of the salary (basic plus DA) - under Section 80CCD(1)
- 1. of the Income Tax Act within the overall ceiling of Rs 1.5 lakh allowed under Section 80C and Section 80CCE.
- The employer's contribution to NPS is exempted under Section 80CCD
- 2. Moreover, individuals can claim an additional deduction of up to Rs 50,000 under Section 80CCD (1B), which is in addition to Rs 1.5 lakh permitted under Section 80C.
- 3. A self-employed person can also contribute 10 per cent of his gross income under Section 80CCD (1) in NPS.
When can I withdraw money from NPS?›
Can I defer withdrawing the lumpsum amount at 60?›
What if I want to take the money out before I am 60?›
What happens to the money if I discontinue the scheme?›
What happens if the subscriber dies before 60 years?›
How do I withdraw the money from NPS?›
What are the documents to be submitted along with withdrawal forms?›
- 1. PRAN card (original)
- 2. Attested copy of proof of identity
- 3. Attested copy of proof of address
- 4. A cancelled cheque
What is an annuity?›
Who are the Annuity Service Providers?›
- 1. Life Insurance Corporation of India
- 2. SBI Life Insurance
- 3. ICICI Prudential Life Insurance
- 4. Bajaj Allianz Life Insurance
- 5. Star Union Dai-ichi Life Insurance
- 6. Reliance Life Insurance
- 7. HDFC Standard Life Insurance
What are the different annuity options offered by ASPs?›
- 1. Pension (annuity) payable for life at a uniform rate to the subscriber
- 2. Pension (annuity) payable for 5, 10, 20 years certain and thereafter as long as you are alive
- 3. Pension (annuity) for life with return of purchase price on death of the subscriber
- 4. Pension (annuity) payable for life increasing at a simple rate of 3 per cent
- 5. Pension (annuity) for life with a provision of 50 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber
- 6. Pension (annuity) for life with a provision of 100 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber
- 7. Pension (annuity) for life with a provision of 100 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber and with return of purchase price on death of the spouse.
How is the annuity income taxed?›
All about NPS
How NPS benefit in salary can increase tax savings
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
How to restructure salary, investments to cut income tax outgo by Rs 64,557
Under Section 80CCD(2), up to 10% of the basic salary put in the NPS on behalf of the employee is tax-free. TaxSpanner estimates that Patil can reduce his tax by almost Rs.65,000 if his company rejigs his pay structure to include some tax-free emoluments and he increases the contribution to the NPS to 10% of his basic salary.
Does the new income tax regime suit you? Find out who should move from the old tax regime to the new one
With the start of the new financial year, companies are reaching out to their employees to select the tax regime for 2024-25. This is an important decision because you can do it only once in a financial year. Once you make a choice, your income will be taxed as per the tax structure of that regime
Tax-saving ideas: Do this to reduce tax to zero
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
How NPS investment of Rs 50,000 can help you save more income tax
NPS deduction of Rs 50000: Under the old tax regime, an individual can claim additional deduction of Rs 50,000 for NPS investment made. This deduction is available over and above Rs 1.5 lakh available under Section 80C of the Income Tax Act. With full utilisation of Section 80C and additional NPS investment, an individual can claim total deduction of Rs 2 lakh in a financial year.
How HRA, NPS can help you save tax of Rs 1.9 lakh
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
Tax-free allowances can be availed under new income tax regime too: Avinash Godkhindi, CEO, Zaggle Prepaid
The flexi benefits in the salary can now be managed digitally, which actually eases the compliance burden for both the employee and the employer. For instance, the Zaggle Multi Wallet Card can be used to pay for a range of employee benefits and reimbursements, says Avinash Godkhindi, CEO, Zaggle Prepaid.
Tax-saving ideas: How to restructure your salary to reduce income tax outgo by more than Rs 1 lakh
Taxpayers can reduce their tax significantly by reformatting their salary. If companies restructure their compensation packages by replacing taxable emoluments with some tax-free perks, they can lower the tax liability of their employees. There are several such tax-exempt allowances, including food coupons and reimbursement of expenses on fuel and travel, newspapers and periodicals, phone and Internet. The taxable portions of the salary, such as the special allowance, can be reduced to make place for the tax-exempt allowance. Find out how to go about it.
Tax-saving tips: How to use NPS benefit from employer to save Rs 80,000 in tax
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
NPS investment can save you tax on income up to Rs 9.5 lakh under old, new tax regime: Here's how
Tax saving via NPS investment: There are many income tax laws changes that have come into effect from April 1, 2023 for current FY 2023-24. However, NPS investment is one that can help you save tax in both the old and new tax regimes. However, it is important to know the tax rules to save income tax via NPS investment.
How to reduce income tax by Rs 35,000 with perks, health cover
Under Section 17(2), gadgets bought in the name of the company and given to the employee for personal use are taxed at only 10% of their value. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their income and investments.
Low charges, high returns, income tax benefits — 5 reasons to choose NPS for retirement planning
The NPS for the general public completes 15 years this week. Over the years, the NPS has undergone many changes and become more investor friendly. The Pension Fund Regulatory and Development Authority (PFRDA) has made the scheme more flexible and introduced new features. It has also made it easier to open an NPS account. Here are five reasons why you should invest in it.
NPS investors must know about these latest NPS charges; PFRDA releases full list
National Pension Scheme (NPS): In a master circular dated April 25, 2024 the Pension Fund Regulatory and Development Authority (PFRDA) has specified the charges applicable for point of presence (PoP) under NPS. The full list of all the applicable charges including the maximum and minimum applicable charges can be found here.
NPS is a long-term investment with very low costs, low risk profile: Rahul Bhagat, CEO, DSP Pension Fund
Annuity should not be a sore point, because it offers a fixed and assured income for life. It is like a fixed deposit for the rest of your life. An annuity does away with the reinvestment risk and the risk of longevity. At least some part of the retirement portfolio should generate a fixed and assured income, Rahul Bhagat tells Babar Zaidi
NPS equity funds have consistently beaten large-cap mutual fund in last 10 years: A look at how NPS funds have performed
NPS investment: The low charges translate into higher returns for the NPS investor. This is why NPS equity funds have consistently beaten the large-cap mutual fund category in the past 10 years and even the flexi-cap category is ahead by a slim margin. Don’t base your decision on short-term perfromance but look at the long-term returns.
Retirement planning: 5 reasons to invest in NPS
The NPS for the general public completes 15 years this week. Here are five reasons why you should invest in it.
Data Sources: Mutual Funds, ETFs, and NPS data are sourced from Value Research
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