Pension Account for retirement savings
Mandatory to open in order to join NPS
Withdrawal from this account is conditional
Tax deduction can be claimed on investment
Investment Account for emergency needs
No tax deduction available on Investment
Optional for Customer. It can be opened later as well
Withdrawal from this account is permitted any time
Subscribers choose from Equity and Fixed Income funds to grow savings
Its administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA)
Allows regular contribution to a pension fund during working life
On retirement, a part of the corpus can be withdrawn in lump sum
Balance corpus is invested in an annuity plan to secure regular income
National Pension System is a pension system introduced and driven by Government of India from 2004.
Low
cost on
investment
Fully portable
across jobs
and locations
Online accessibility
of account
details
Flexible
Contribution
and withdrawal option
For Salaried Individuals | ||
Category | Section | Investment Limit |
---|---|---|
Additional Contribution | 80 CCD (1B) | 50,000 |
Own Contribution | 80 CCD (1) | 10% of Salary (upto 1.5 lakh)* |
Employer Contribution | 80 CCD(2) | 10% of Salary (upto 7.5 lakh)# |
For Self Employed Individuals | ||
Category | Section | Investment Limit |
---|---|---|
Own Contribution | 80 CCD (1) | 20% of Gross Annual Income (upto 1.5 lakh)* |
Additional Contribution | 80 CCD (1B) | 50,000 |
Asset Class | Cap on Investment |
---|---|
Equity (E) | 75%* |
Corporate Bonds (C) | 100% |
Government Securities (G) | 100% |
Alternate Investment Funds (A) | 5% |
Active Choice
Asset Class | Cap on Investment |
---|---|
Equity (E) | 75%* |
Corporate Bonds (C) | 100% |
Government Securities (G) | 100% |
Alternate Investment Funds (A) | 5% |
*Equity is capped at max 75%
*A is capped at max 5%
Auto Choice
Subscriber can switch between Investment Pattern and asset classes twice times in a year
*For Corporate NPS Subscriber, exit on retirement age defined by the Company is treated as “Exit on Maturity”
Point of Presence (PoP) charges
Charge Head | Charges | Frequency of deduction | Mode of deduction |
---|---|---|---|
NPS Account Opening | ₹400 | One time | Deducted from contribution amount deposited by Customer |
Contribution Processing* | Up to 0.50% subj to min ₹30 & max ₹25K | On each transaction | |
Non - Financial Transaction Processing | ₹30 | ||
Persistency Charge (only for Retail NPS account) | ₹100 | Per annum | Through cancellation of units by CRA |
Exit / Withdrawal processing | 0.125% of corpus with min ₹125/- & max ₹500/- | On transaction | Collected upfront from the customer |
Central Record Keeping Agency (CRA) Charges
Charge Head | NSDL | KFintech | Frequency of deduction | Mode of deduction |
---|---|---|---|---|
PRAN Generation | ₹40.00 | ₹39.36 | One time | By unit cancellations by end of quarter |
Annual Maintenance | ₹69.00 | ₹57.63 | Each year | |
Financial Transaction Processing | ₹3.75 | ₹3.36 | On each transaction |
Other Intermediaries Charges
Intermediary | Charge Head | Charge | Frequency of deduction | Mode of deduction |
---|---|---|---|---|
Custodian | Asset Servicing | 0.0032% | Per annum | Recovered through NAV deductions |
NPS Trust | Trust Management | 0.005% |
ATTENTION INVESTORS
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
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This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.
ATTENTION INVESTORS
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
We are ISO 27001:2013 Certified.
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.