NPS Login Updated, NPS Vs Voluntary Pension Fund (VPF), How to open an NPS account? Features & Benefits of NPS, Types of NPS Account

NPS Login Updated: The National Pension System Trust is a specialized division of the Pension Fund Regulatory and Development Authority under the jurisdiction of the Ministry of Finance, Government of India. And the National Pension System is a voluntary defined contribution pension system in India. Any citizen of India (both resident and non-resident) in the age group of 18-65 years (as of the date of submission of NPS application) can join NPS.

National Pension System or NPS is a pension scheme available to the citizens of India. It is a long-term investment scheme for retirement which is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and the Central Government.

In Hindi:

NPS Login Updated: नेशनल पेंशन सिस्टम ट्रस्ट भारत सरकार के वित्त मंत्रालय के अधिकार क्षेत्र के तहत पेंशन फंड नियामक और विकास प्राधिकरण का एक विशेष प्रभाग है। और राष्ट्रीय पेंशन प्रणाली भारत में एक स्वैच्छिक परिभाषित अंशदान पेंशन प्रणाली है। भारत का कोई भी नागरिक (निवासी और अनिवासी दोनों) 18-65 वर्ष के आयु वर्ग में (एनपीएस आवेदन जमा करने की तिथि के अनुसार) एनपीएस में शामिल हो सकता है।

राष्ट्रीय पेंशन प्रणाली या एनपीएस भारत के नागरिकों के लिए उपलब्ध एक पेंशन योजना है। यह सेवानिवृत्ति के लिए एक दीर्घकालिक निवेश योजना है जिसे पेंशन फंड नियामक और विकास प्राधिकरण (पीएफआरडीए) और केंद्र सरकार द्वारा नियंत्रित किया जाता है।

What is NPS?

NPS is one of the best investment schemes governed by the Regulatory and Development Authority for Pension Fund (PFRDA). PFRDA has set up the National Pension System Trust (NPST) which is the registered owner of all the properties under this investment scheme. The full form of NPS is National Pension System.

Earlier, only central government employees were covered under the National Pension Scheme. Now NPS has been opened to all Indian citizens. The NPS scheme is very important for anyone who works in the private sector and needs a regular pension after retirement. NPS is flexible across businesses and locations with tax benefits in investments under section 80C and section 80CCD(1B).

What are the types of National Pension System accounts?

Under the National Pension Scheme, there are two primary account categories- Tier I and Tier II. The first is the default account, while the second is a voluntary supplement. And the following section will explain the two account types.

The two types of NPS accounts offered by PRAN are as follows:

• Tier-I Account: You will contribute your savings for retirement in this non-withdrawable account. Investments made under this section can be claimed as a deduction up to Rs 1.5 lakh under section 80C of the Income Tax Act, 1961. Additionally, you can invest and claim up to Rs 50000 as a deduction under section 80CCD (1B). Under the Income Tax Act, 1961.
• Tier-II Account: This is a voluntary retirement cum savings type account. You will be able to open a Tier-II account only if you already have an NPS scheme Tier I account. You are free to withdraw your money from this account whenever you want.

So if you do not wish to choose asset allocation, your money will be invested according to the “Auto Variety” option.

You can open an account called ‘Point of Presence (POP)’ in the NPS scheme with the authorized service provider branches. You have the right to move from one branch of the POP to another branch at your convenience. The tax benefits under the National Pension System in India can be amended from time to time as prescribed following the Income Tax Act, 1961.

Also, Read- NPS Application Form, Application Status… Read More

What are the features and benefits of the National Pension System (NPS)?

Earn High Returns with NPS

NPS offers significantly higher returns than other traditional tax-saving investments, such as PPF etc. With the NPS plan, you can earn an annual return of 8% to 10%. NPS returns are not fixed and vary as the funds in the National Pension Scheme are market linked.

Assess Your Risk

At present, the equity exposure limit for the National Pension System (NPS) ranges between 50% to 75%. For government employees, this limit is 50%. Every year, from the year the investor turns 50, the equity component will decrease by 2.5% within the specified limit.
Nevertheless, the maximum limit has been fixed at 50% for an investor aged 60 years and above. This stabilizes the risk-return equation for the interests of investors, ensuring that the portfolio is somewhat free from the volatility of the equity market.

NPS Tax Benefits

A deduction of up to Rs 1.5 lakh is allowed for your contribution as well as employer contribution on investments made in the NPS scheme.

80CCD(1) includes self-contribution, which is part of investment under section 80C. The total deduction in investment under 80CCD(1) is 10% of the salary, but not more. This limit is 20 per cent of gross income for a self-employed taxpayer.
80CCD(2) protects the employer’s NPS contribution, which is not a part of section 80C. This provision does not apply to self-employed taxpayers. The maximum amount eligible for deduction shall be the minimum of the following:

• Actual NPS contribution by the employer
• Basic + 10% of DA c. gross total income

You can claim other self-contribution of investments (up to Rs 50,000) under section 80CCD(1B) to avail of NPS tax benefits, which makes it one of the best investment plans with a total tax deduction of up to Rs 2 lakhs

Also, Read- NPS Scholarship, Last Date, Application… Read More

Post-Withdrawal Rules After 60

Contrary to popular opinion, on your retirement, you cannot withdraw the entire amount from this best investment plan. To earn a monthly pension from a PFRDA-registered insurance firm, you need to set aside at least 40% of the amount. The remaining 60 per cent will be tax-free. This is one of the highlights that makes NPS the best investment option in India.

Early Withdrawal Allowed

You must continue investing in the NPS scheme till the age of 60 years. However, if you have been saving for at least 3 years, you can withdraw up to 25% for specific purposes. These include marriage or higher studies for girls, building/buying a home, or self/family medical care, among others.
During the entire tenure, you can make withdrawals from your NPS account up to three times (with a tenure of 5 years). Only Tier I accounts and not Tier II accounts are subject to these limits.

Equity allocation up to 50%

Being one of the best investment options in India, NPS invests in equities. Up to 50 per cent of your savings can be allocated to equities. There are two options to invest in – either auto-selection or active option.
Auto-selection as per your age will determine your risk profile for this investment option in India. For example, the older you are, the more stable and less volatile your investments are. Active Option allows you to decide the plan and split your investment

How to open an NPS account?

Offline Process

You can open an account in the NPS scheme. You will first need to find a POP-Point of Presence (it can also be a bank). Download and send the Subscriber Form from your nearest POP along with KYC paperwork. Ignore if that bank also follows KYC.

The POP will give you a pre-permanent retirement account number after you make the initial investment (at least Rs 500 or Rs 250 monthly or Rs 1,000 annually). This number and password will help you access your account in your sealed welcome box. And there is a one-time registration fee of Rs.125 in this process.

Online Process

You can also open an online account in the NPS scheme. Opening an online account (enps.nsdl.com) is easy if you link your account with your PAN, Aadhar and mobile number. NPS registration can be checked using the OTP sent to your mobile phone. This will create a PRAN (Permanent Retirement Account Number) which can be used for NPS login.

How to do NPS Registration?

For NPS online registration, you need to click here and follow the steps mentioned below

New NPS Registration

• Applicant Type (Individual Subscriber or Corporate Subscriber)
• Status of Applicant (Citizens of India or Non-Resident of India)
• Then register with (Permanent Account Number)
• Account Type (Tier I & Tier II or Tier I only)
• Bank/ POP
• Then, click on continue to proceed with the NPS registration completion.

Complete Pending NPS Registration

You’ll have to fill in your Acknowledgement No, Acknowledgement Data, First Name, Date of Birth and Email Address. Select submit to continue.

How to Do NPS Login?

There are two portals through which you can do an NPS Login Updated.

NSDL NPS Portal: NPS Login Updated

You can sign in to the NSDL NPS server in two ways. First, if you have a password already. Another way is if you have not created a password and are first signing into your PRAN account.

Here are the steps that you need to follow if you already have a password.

• Go to the NSDL NPS portal npscra.nsdl.co.in for the NPS login
• Click on the Open or Add your NPS account button
• Next, you’ll see a button saying, ‘Login with PRAN/IPIN’, click on it
• Enter your PRAN and password on the login screen, followed by ‘Submit’ for gaining access to your E-NPS account.

You’ll need to create a password using the steps outlined below when you log in for the first time

• Go to the official portal of NSDL NPS (npscra.nsdl.co.in)
• Click on ‘Open your NPS account or contribute online
• Then click next on, ‘Login with PRAN/IPIN’
• Select ‘ eNPS password’ to create a new password
• Fill in your date of birth. Type the new password and then verify it. After entering the captcha and hitting ‘Submit’
• You’ll receive an OTP on your mobile phone. There will be an empty field reading’ Access OTP,’ and you’ll need to key in the OTP to validate your new password
• You can now access your E-NPS account with the PRAN and the new password

Karvy NPS Portal

• Go to the official Karvy NPS portal
• Then select “Login for existing subscribers”
• To log in to your E-NPS account, type your PRAN and Password on the login screen

Follow the below steps to generate a new password

• Click on the link “Click here to generate password” on the login screen
• Then enter your PRAN, date of birth and captcha. Once you click on submit, you will receive an OTP on your registered mobile number
• The OTP will help you to set the new password
• You can now login to your E-NPS account with this password

Also, Read- Atal Pension Yojna NPS NSDL APY Online Scheme, Eligibility & Benefits… Read More

NPS Vs Voluntary Pension Fund (VPF)

There are significant differences between NPS and Voluntary Pension Fund (VPF) which are listed here:

• NPS covers individuals who are in the unorganized sector, whereas the Voluntary Pension Fund (VPS) covers only those in the organized sector.
• NPS offers options of equity, corporate debt and government bonds while VPF operates mostly as a debt instrument, with an upper limit of 15% on equity allocation.
• The investment amount is different. For NPS, an employee’s annual contribution is Rs. 6000 is the minimum condition, whereas, in VPF, an employee expects to pay 12 per cent of the salary to the fund.
• In the case of VPF, the Central Board of Trustees of the Workers’ Provident Fund Association (EPFO) sets the annual interest rate (currently 8.65%) to be paid every year, while NPS is a market-linked product.
• Tax benefits vary for plans. As per section 80C, the investment pool, as well as the interest in VPF, are eligible for an income tax deduction of up to Rs. 1.5 lakh. However, it varies in the case of NPS. Deduction under section 80C up to Rs. 1.5 lakh is allowed.

Secure yourself financially after retirement

One of the major benefits of retirement planning through this best investment plan is that you get to enjoy tax benefits today while saving for your future. NPS comes with several tax benefits. So apart from this, NPS, we at Max Life Insurance offer you a wide range of savings plans. You can calculate the premium for these tax-saving investment plans and choose the best option for yourself accordingly.

FAQs on NPS Login Updated

What is NPS and how does it work?

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable subscribers to make optimal decisions about their future through systematic savings during their working life. NPS tries to inculcate the habit of saving for retirement among the citizens.

What is the benefit of NPS?

Flexible- NPS offers a range of investment options and choices of Pension Funds (PF) to properly plan investment growth and monitor the growth of pension funds. So subscribers can switch from one investment option to another or from one fund manager to another.

Is NPS better than PPF?

PPF gives fixed returns on a fixed income bracket, whereas equity pension funds under NPS can give higher returns over a longer period. However, PPF investment comes with less risk as compared to NPS investments which depend on the markets

Is NPS a good investment?

As you can see, NPS makes for a great retirement savings plan. So if you aim to save for other purposes like children’s education, daughter’s marriage etc., then this may not be the best plan to invest. For all these needs, PPF over NPS scores as the best investment plan.