National Pension Scheme
Enrol in the National Pension System (NPS) online through the eNPS portal to build a retirement corpus with market-linked returns, and claim additional tax deduction under Section 80CCD(1B).
Required Documents
Step-by-Step Process
1
Register on eNPS
Go to enps.nsdl.com, select 'National Pension System' and register using your PAN and Aadhaar-linked mobile OTP.
2
Choose Account Type and Fund Manager
Select Tier-I (retirement account, restricted withdrawal) and pick a Pension Fund Manager and asset allocation (Active or Auto choice).
3
Upload KYC and Photo/Signature
Complete e-KYC via Aadhaar OTP, and upload a scanned photograph and signature.
4
Make the Initial Contribution
Pay the minimum initial contribution (Rs 500 for Tier-I) online via net banking, UPI, or debit/credit card.
5
Receive PRAN
You receive a Permanent Retirement Account Number (PRAN) instantly, which you'll use for all future contributions and tracking.
Pro Tips & Warnings
- An additional Rs 50,000 deduction under Section 80CCD(1B) is available exclusively for NPS, over and above the Rs 1.5 lakh limit under Section 80C.
- Tier-I is the main retirement account with withdrawal restrictions; Tier-II is a voluntary savings account with no lock-in, but no separate tax benefit.
- At retirement (age 60), you must use at least 40% of the corpus to buy an annuity (regular pension); the rest can be withdrawn as a lump sum.