Invest in National
Pension System (NPS)

Any citizen of India, aged between 18-65 years as on the date of submission of his/her application can invest in NPS. The citizens can join NPS either as individuals or as an employee-employer group(s). However, OCI (Overseas Citizens of India), PIO (Person of Indian Origin) card holders and HUFs are not eligible for opening an NPS account.

Currently, investment in NPS on HDFC Securities is available for Indian citizens who are resident and pay tax in India.

Subscriber can make investments of upto ₹2,00,000 to be eligible for tax saving of ₹62,400*

Individual investments of up to ₹50,000 to be eligible for tax deduction u/s 80CCD (1B) - Tax saving of ₹15,000*

Under NPS there are two types of accounts, Tier 1 & Tier 2

Tier 1 account is mandatory for investing in NPS and all the tax benefits are associated with this account type. However, withdrawals are restricted and conditional.

Tier 2 is optional and an add-on to Tier 1 account. Subscribers are free to withdraw their investments from this account at very low cost whenever they wish.

The National Pension System (NPS) has a minimum lock-in period of 3 years. After this period, Partial withdrawals can be made under specific conditions:

Partial Withdrawal: After completion of 3 years, a subscriber can withdraw 25% of their Voluntary contributions as Tax-Free for reasons such as critical illness, disability, education or marriage of children, property purchase or development , or starting a new venture. This can be done up to 3 times during the entire tenure.

Premature Exit: After completion of 5 years, a subscriber can withdraw a maximum of 20% of the corpus value as a lump sum and Tax Free whereas, minimum 80% must be used to purchase an annuity plan for pension, unless the corpus value is less than ₹2.5 lakh, it can be withdrawn as lump sum.