You have to submit duly filled Subscriber Registration Form [CSRF (Common Subscriber Registration Form) /NSRF-NRI/OCI /Online data fields] along with the following documents to the Service Provider (PoP)/Online:
For resident individuals:- One recent photograph
- PAN Card
- Proof of Address
- Proof for the Bank Account
- Scan Signature
| Non-resident Individual (NRI) | Non-resident Individual (NRI) |
| One Recent Photograph | One Recent Photograph |
| Indian Passport | Indian Passport |
| Indian Passport | OCI Card |
| Proof of address - India | Proof of address - foreign country |
| Proof for the Bank Account (NRE/NRO) | Proof for the Bank Account (NRE/NRO) |
(NSRF - Nonresident Subscriber Registration Form
NRI - Non Resident Indian
OCI – Overseas Citizen of India)
No, you cannot open multiple PRANS or NPS accounts. In fact, there is no need to open a second account as NPS is portable across sectors and locations.
However, you can have a Tier-I and Tier-II accounts.
You need to contribute a minimum of ₹ 1000 every year in your Tier-I account and ₹ 250 every year in Tier-II. The minimum contribution for opening a Tier-I account is ₹ 500, and ₹ 1000 for opening a Tier-II account.
If you do not contribute the minimum amount, your account will be frozen/inactive. Your account will be activated upon making a contribution to the account. The NPS account will be closed only when you submit a request (physical or online) for exit from NPS to a service provider (PoP).
No, the contribution to your NPS will solely be yours and in certain cases, your employer’s.
The money invested in NPS is managed by PFRDA-registered Pension Fund Managers.
The list of NPS Pension Fund Managers is available in the PFRDA website https://www.pfrda.org.in
- Active Choice: This option allows you to decide how much your money should be invested in different assets.
- Auto choice or lifecycle fund: This is the default option which invests money automatically according to your age.
Investment choice & Asset allocation pattern
- Active choice
- Equity (E) – Maximum 75%
- Corporate Bonds (C) – Upto 100%
- Government Securities (G) – Up to 100%
- Alternate Assets (A) – Maximum 5%
- Auto choice
- Conservative Life Cycle Fund (LC25)
- Moderate Life Cycle Fund (LC50) – Default
- Aggressive Life Cycle Fund (LC75)
Yes, you can change your investment choices and asset allocation 4 times during a financial year for both Tier-I and Tier-II accounts.
Yes, you can change your pension fund manager once every financial year.
Yes, you can select different pension fund managers and investment options for your NPS Tier-I and Tier-II accounts.
- An employee’s own contribution is eligible for a tax deduction up to 10% of Basic Salary ( old tax regime) or up to 14% of Basic Salary ( new tax regime) (basic plus DA) – under Section 80CCD (1) of the Income Tax Act within the overall ceiling of ₹ 1.5 lakh allowed under Section 80C and Section 80CCE.
- The employer’s contribution to NPS is exempted under Section 80CCD (2), which is subjected to an aggregated limit of ₹ 7.5 lakhs of contribution made towards NPS, recognised provident fund and approved superannuation fund.
- Moreover, you can claim an additional deduction of up to ₹ 50,000 under Section 80CCD (1B), which is in addition to ₹ 1.5 lakh permitted under Section 80C.
- Even if you are self-employed, you can contribute 20% of your gross income under Section 80CCD (1) in NPS.
- Partial Withdrawal - After completion of 3 years, you can withdraw 25% of your contributions for specific reasons viz illness, disability, education, or marriage of children, purchasing property, starting a new venture. You can partially withdraw up to a maximum of 3 times during your tenure in NPS.
- Premature Withdrawal - After completion of 5 years or before completion of 3 years (if you joined NPS after the age of 60), you can withdraw maximum 20% of the corpus as lumpsum and minimum 80% of the corpus has to be utilised for purchasing an annuity plan for receiving pension. If the accumulated corpus is less than ₹ 2.5 lakhs, the entire corpus is paid as lumpsum to you
- Normal Withdrawal – On completion of 60 years of age (if you joined NPS before the age of 60) or after completion of 3 years (if you joined NPS after the age of 60), you can withdraw maximum 60% of the corpus as lumpsum and minimum 40% of the corpus must be utilised for purchasing an annuity plan for receiving the pension. If the accumulated corpus is less than ₹ 5 lakhs, the entire corpus is paid to you as lumpsum.
There are more withdrawal options:
- Continue in NPS till the age of 75 years or exit any time after such continuance before 75 years
- While exiting from NPS, you can:
- Defer receiving the lumpsum (60% corpus) till the age of 75 years or withdraw the same in instalments till 75 years
- Defer annuity purchase (40% corpus) till the age of 75 years
In case of unfortunate event of death of a subscriber, the nominee/legal heir can withdraw the entire accumulated corpus. The nominee/family members of the deceased subscriber can also purchase annuity, if they so desire.
If you are an NPS All Citizen subscriber and you do not exit from NPS at the age of 60, your account will automatically be continued up to the age of 75. You can exercise the option of normal exit from NPS at any point of time you wish, after the age of 60. At the age of 75, you must close the account mandatorily.
If you discontinue your investment, your account will be frozen/Inactive. You can reactivate the account only if you make the minimum contribution required.
If the subscriber dies before the age of 60, the entire accumulated wealth would be paid to the nominee/legal heir of the subscriber. The nominee can also purchase an annuity plan with the accumulated pension amount from an NPS registered annuity provider.
You can initiate requests for withdrawals from NPS by logging in to your pension account or by submitting a physical form to the service provider (PoP) directly along with the specified documents. For more details, please visit https://www.pfrda.org.in/index1.cshtml?lsid=220
- Original PRAN card/notarized affidavit in case if the original is not submitted. ( not required in submitted online).
- Photo ID proof
- Residence proof
- Cancelled cheque/bank certificate/copy of the bank passbook with photograph and all the other details like IFS code, Account no., Branch address and code
- Direct credit Mandate.
- Annuity application form duly filled and signed by you
- Death certificate in original, if the claim is for the benefits arising out of the death of the subscriber
- Legal heir certificate wherever applicable
- Relieving letter and NOC, if applicable
An annuity provides a regular income (it could be monthly, quarterly, annually, etc.) at a specified rate for a specified period chosen by you. In NPS at the age of 60, you must use at least 40% of the corpus to buy an annuity. It means you can pay the money to an Annuity Service Provider (ASP) and choose an annuity option to ensure a regular income after retirement.
Presently the following ASPs are empanelled with PFRDA for providing pension:
- Tata AIA Life Insurance Company Ltd.
- SBI Life Insurance Co. Ltd.
- Life Insurance Corporation of India
- Star Union Dai-ichi Life Insurance Co. Ltd.
- HDFC Life Insurance Co. Ltd.
- IndiaFirst Life Insurance Co. Ltd.
- Bajaj Allianz Life Insurance Co. Ltd.
- Canara HSBC Life Insurance Co. Ltd.
- Kotak Mahindra Life Insurance Co. Ltd.
- Max Life Insurance Co. Ltd.
- PNB Metlife India Insurance Co. Ltd.
- Aditya Birla SunLife Insurance Co. Ltd.
- ICICI Prudential Life Insurance Co. Ltd
- Shriram Life Insurance Company Limited
- Annuity for Life with Return of Purchase Price - Subscriber will get annuity for life time and on death of the Subscriber, payment of annuity ceases & 100% of the purchase price will be returned to the nominee(s).
- Annuity for Life without Return of Purchase Price - Subscriber will get annuity for life time and on death of the Subscriber, payment of annuity ceases and no further amount will be payable.
- Joint Life Annuity with Return of Purchase Price - Subscriber will get annuity for life time and on death of the Subscriber, annuity will be payable to Spouse for life time. On death of the Spouse, payment of annuity ceases and 100% of the purchase price will be returned to the nominee(s).
- Joint Life Annuity without Return of Purchase Price - Subscriber will get annuity for life time and on death of the Subscriber, annuity will be payable to Spouse for life time. On death of the Spouse, payment of annuity ceases and no further amount will be payable.
- NPS - Family Income Option with Return of Purchase Price - Subscriber will get annuity for life time and on death of the Subscriber, annuity will be payable to spouse of the Subscriber (if any) for life time. On death of Spouse, to dependent mother and then to dependent father of the Subscriber. On death of the last annuitant, payment of annuity ceases and 100% of the purchase price will be returned to the surviving children of the Subscriber and in absence of children, the legal heirs of the subscriber as applicable.
The annuity income will be added to your income and taxed as per the income tax slab applicable to you.
