Retail NPS
Retail NPS
Any citizen of India, aged between 18 and 70 years, willing to join NPS directly under All citizens model and not through employer, is said to be a retail subscriber. Any self-employed or salaried individual can open NPS account provided he / she fulfils the eligibility criteria and contributes at periodic intervals during the work life period to build up sizeable corpus for his / her retirement and draw pension post retirement.
Eligibility
Any Citizen of India (Resident, Non-Resident, or OCI)
Age between 18 and 70 years
KYC Compliant
Why Join Retail NPS?
Regular pension on retirement
Low-cost pension scheme
Eligible tax benefits on contributions
Risk spread across asset classes
Portability across jobs and locations
Withdrawals for emergencies
Tax-free withdrawals on exit
Tax Benefits
NPS offers multiple tax benefits on contributions as well as withdrawals .
Tax Benefits On Contributions
For self-employed individuals
20% of gross income invested in NPS and subject to a maximum of ₹1.5 lakh is available for deduction under section 80CCD(1).
Additionally, invest up to ₹50,000/- and avail tax deduction under section 80CCD(1B). This benefit is over and above ₹1.5 lakh limit of Section 80CCE.
For salaried individuals:
10% of Salary (Basic and DA) invested in NPS subject to a maximum of ₹1.5 lakhs is available for deduction under section 80 C.
Additionally, invest up to ₹50,000/- and avail tax deduction under section 80CCD(1B). This benefit is over and above ₹1.5 lakh limit of Section 80CCE.
*Kindly note the above-mentioned tax benefits are available only under the Old Tax Regime.
Tax Benefits On Withdrawals & Exit
Partial Withdrawals: Up to 25% of self-contributed amount allowed as partial withdrawal for pre-defined emergencies, shall be tax-exempt
Withdrawals on premature exit: Up to 20% of accumulated corpus is eligible for withdrawal upon premature exit shall be tax-exempt
Withdrawals upon attaining Superannuation or exit on maturity: Entire corpus amount is tax free. Maximum 60% allowed as withdrawal with remaining 40% to be invested in annuity for receiving your pension.
Annuity Investment: There is no GST applicable on NPS corpus that is invested in Annuity plan provided by PFRDA-approved insurance companies, for receiving a pension.
How to Join?
Click Open NPS Account and select your preferred Central Recordkeeping Agency (CRA).
- Fill out the registration form online and upload documents.
- Make initial payment of ₹500/- or more and get your NPS Account activated.
- This will generate PRAN (Permanent Retirement Account Number) which is unique, i.e. , an individual can have only one PRAN number.
- After a day, the subscriber gets a Login ID to his account held by the CRA. Using this login ID, subscriber can view all details and history of his/her account.
Kindly keep the below information and documents ready
- Mobile-linked Aadhaar Card or DigiLocker
- Bank account details (account number, IFS Code, and bank name; ensure that the bank account is in name of the individual registering for NPS)
- scanned copy of cancelled cheque or bank passbook
- Scanned copies of your PAN Card and your signature
- Ensure your UPI or Internet Banking is active (for payment purposes)
For any queries and help please connect to our team on operations[at]sbipensionfunds[dot]co[dot]in
Pension Projector