NPS

National Pension Scheme (NPS)

The National Pension Scheme (NPS) is a government-backed social security initiative introduced by the Central Government of India. It is open to all Indian citizens—whether employed, self-employed, or working in the unorganized sector—except members of the armed forces.

The scheme is regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA).

NPS encourages individuals to invest regularly in a pension account throughout their working life. Upon retirement, subscribers can withdraw a portion of the accumulated corpus as a lump sum. The remaining amount is used to provide a steady monthly pension.

Key features of NPS include:

• Voluntary participation
• Portability across jobs and locations
• Attractive tax benefits under Section 80CCD (1B), which are over and above the Rs. 1,50,000 limit under Section 80C.