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
- 70.77
- 37.36
- 18.12
- 20.28
- ICICI Prudential Pension Fund - Scheme E - TIER I
- 71.16
- 34.63
- 18.06
- 20.27
- UTI Retirement Solutions - Scheme E - TIER II
- 56.32
- 33.77
- 16.85
- 19.65
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
- -1.55
- 9.37
- 14.15
- 31.94
- Scheme E TIER II
- -1.44
- 9.40
- 14.11
- 31.73
- Scheme Tax Saver TIER II
- 0.88
- 4.27
- 6.51
- 13.27
- Scheme - State Govt
- 0.72
- 3.84
- 6.14
- 12.41
- Atal Pension Yojna
- 0.73
- 3.86
- 6.18
- 12.41
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
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How mutual fund SIP, NPS can help in achieving financial freedom
Mutual fund SIPs and the NPS can help achieve financial freedom through early investment, compounding and strategic fund selection. Emphasis was also placed on portfolio diversification and the importance of aligning investments with personal risk tolerance and financial goals for long-term independence.
![](https://img.etimg.com/thumb/width-165,height-123,msid-42031747/etlogo.jpg)
NPS schemes beat over 200 mutual funds in last one year. Should you switch sides?
NPS schemes delivered higher average returns than over 200 equity mutual funds in the past year, with Tata Pension Management at the forefront. Experts caution that comparing the two over just a year may not offer a full understanding for informed investment decisions. NPS remains a robust retirement option.
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How to cut tax outgo by Rs.35,000 with NPS, health insurance
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
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No proposal to increase time limit for employees to switch from NPS to old pension scheme: Centre
The Lok Sabha was informed that there is no proposal to extend the time limit for central government employees to switch from the National Pension System (NPS) to the old pension scheme. The NPS, introduced in 2003, is mandatory for new recruits in the central government, except for the armed forces. A one-time option was given to certain employees for inclusion under the Central Civil Services (Pension) Rules, 1972 (now 2021), with fixed time schedules outlined for decision-making processes. No further instructions are proposed beyond those issued on March 3, 2023.
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NPS helps save tax in new regime, how to invest
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
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Not just tax-savings! NPS equity funds offer up to 41% returns in one year
National Pension System provided handsome returns in the last one year. Ten NPS fund managers have completed one year of existence and gave upto 41% returns in the last one year.
![](https://img.etimg.com/thumb/width-165,height-123,msid-42031747/etlogo.jpg)
NPS Vatsalya announced, another tax nudge for NPS in Budget 2024: All you need to know
Private sector employees can now avail of 14% tax deduction, up from 10%, on the employer’s contribution to their NPS account.
![](https://img.etimg.com/thumb/width-165,height-123,msid-42031747/etlogo.jpg)
NPS gets more attractive for salaried under new tax regime; deduction under Section 80CCD(2) increased
The deduction under Section 80CCD(2) is planned to be increased from 10% to 14% of the basic pay. This section allows you to contribute up to 10% of your basic salary to NPS without paying taxes.
![](https://img.etimg.com/thumb/width-165,height-123,msid-42031747/etlogo.jpg)
Budget 2024: Income tax slabs to standard deduction to NPS, what changed for salaried individuals
Finance minister Nirmala Sitharaman announced changes to the capital gains tax rates, which may not be well-received by stock market investors in her Budget speech on Tuesday. The short-term capital gains tax rate on "specified" financial assets has been increased from 15 per cent to 20 per cent, while all other financial and non-financial assets will be taxed at the "applicable tax rate". Long-term capital gains tax rates have also been raised from 10.0 per cent to 12.5 per cent for all financial and non-financial assets. However, the exemption limit for capital gains on certain listed financial assets has been increased from Rs 1 lakh to Rs 1.25 lakh per year, providing some relief to lower and middle-income classes. Listed financial assets must be held for more than a year to be considered long-term, while unlisted financial assets and all non-financial assets require a holding period of at least two years.Budget 2024: Income tax slabs to standard deduction to NPS, what changed for salaried individuals
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FM says will evolve solution on New Pension Scheme to addresses relevant issues
Finance Minister Nirmala Sitharaman announced a forthcoming solution for the New Pension Scheme (NPS) to address relevant issues while ensuring fiscal prudence. The finance ministry's committee, led by Finance Secretary T V Somanathan, is reviewing NPS. Sitharaman also proposed increasing employer NPS contributions and introducing 'NPS-Vatsalya' for minors.
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Budget 2024: FM Sitharaman unveils NPS Vatsalya scheme; now parents can invest for their child
The Budget 2024 has announced the National Pension Scheme for Minors, dubbed NPS Vatsalya. This plan will be converted to normal NPS once the child becomes an adult, i.e., attains 18. Parents can now plan pensions for their children. Under the NPS Vatsalya plan, parents and guardians can contribute to secure the future of children.Budget 2024: FM Sitharaman unveils NPS Vatsalya scheme; now parents can invest for their child
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Budget 2024 allows more tax saving on NPS: Tax exempt contribution to NPS for employees by pvt employers hiked from 10% to 14% of salary
National Pension Scheme (NPS): NPS contribution limit for employer in private sector raised from 10% to 14% of the employee’s basic salary. For both private and public sector employees the deduction limit has been raised from 10% to 14%. All these benefits are available on the new tax regime only.
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Budget 2024: AMFI urges tax concessions for debt mutual funds, releases 16-point proposal
The Association of Mutual Funds in India (AMFI) has released 16-point proposal for Union Budget FY 2024-25 requesting tax concessions in debt mutual funds, parity in taxation on gold and Gold ETF MF, and that all mutual funds should be allowed to launch pension oriented MF schemes with uniform tax treatment as National Pension System (NPS).
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Income Tax Bonanza in Budget 2024: Will FM Sitharaman make new tax regime attractive in Budget? Changes taxpayers want
Budget expectations 2024 of taxpayers: The Finance Minister, Nirmala Sitharaman, needs to make the new tax regime more attractive to taxpayers while ensuring that key benefits are retained. These benefits, such as the exemption for House Rent Allowance, deduction for housing loan interest, and provident fund contributions for salaried individuals, have been crucial for tax planning.ax planning.
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How to cut income tax outgo by Rs 45,000 with NPS, gadget allowance
Under Section 17(2), gadgets and household appliances 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 incomes and investments.
![](https://img.etimg.com/thumb/width-165,height-123,msid-42031747/etlogo.jpg)
How to save Rs 91,000 in tax using NPS, salary perks
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
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Get 60% higher pension by delaying your NPS exit by 5 years; know how NPS continuity and deferment options can help you
NPS exit: Many people who have not saved enough for retirement income in NPS they need to know about the options they have at the time of exit at the age of 60. By exploring deferment, continuance, and systematic withdrawal options, individuals can optimize their NPS corpus for long-term financial security and flexibility. A delay in exit can not only save taxes but can help you build big retirement kitty and hence higher pension.
![](https://img.etimg.com/thumb/width-165,height-123,msid-42031747/etlogo.jpg)
How to cut income tax outgo by Rs 75,000 with NPS, health insurance
How to reduce income tax outgo: Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments. TaxSpanner estimates that Tuteja can reduce his tax by around Rs.75,000 if his company offers him some tax-free emoluments as well as the NPS benefit. Tuteja also needs to invest in the pension scheme on his own, buy health insurance for his parents, and avoid booking taxable capital gains.
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PFRDA to introduce new life cycle fund option by September
Life cycle fund provides an option of investment to subscribers and allocation of equity and debt depends on the option chosen by them. There are different investment choices (Auto/Active) for tier-1 and tier-2 National Pension Scheme (NPS) accounts.
Data Sources: Mutual Funds, ETFs, and NPS data are sourced from Value Research
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