Types of NPS Account

Tier I - Tax Saving Account

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Tier-l account mandatory to join NPS

Investment is locked-in until the age of 60

Withdrawals are conditional

Tax benefits can be claimed

Tier II - Any Time Withdraw

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Only Tier-I account holders can open it

No lock-in period on investment

Flexible withdrawal & exit rules

No tax exemptions on contributions

How NPS Works

Subscribers Death

Nominee/Legal heir
gets corpus

Current Age

Accumulation Phase

Open NPS Account

Retirement Age 60 Years

60%
Withdrawal + 40%
Annuity Plan

Withdrawal Phase

Starts getting pension

Features and Benefits

Regulated

By Pension Fund Regulatory & Development Authority (PFRDA)

Low Cost

Fund Management fees of less than 0.09% p.a.

Flexibility

Invest in asset classes and pension funds of your choice

Attractive Returns

With a mix of Equity, Debt & Alternates

Portable

Transfer NPS account across employers & location

Tax Savings

On Investment, Capital gain & Withdrawals

Tax Benefits

*Employer Contribution to NPS account qualifies for deduction u/s 80 CCD (2). Permissible limit is 10% of basic salary for employees in old tax regime and 14% of basic salary for employees in new tax regime. Please note that employer’s contribution to NPS, EPF and/or Superannuation upto Rs. ₹7.5 lakhs p.a. cumulatively, is eligible for tax deduction; excess amount will be taxed as perquisite in the hands of the employee.

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* Indicative return represents the average returns across PFMs considering 7 - 10 Years returns. Indicative Value at Maturity considered for an investment of ₹10,000 per month for 25 years

Exit & Withdrawal

Exit at Maturity (60 years)

• Up to 60% of corpus can be withdrawn Tax-Free
• Minimum 40% to be invested in annuity for monthly pension
• If corpus ≤ to Rs. 5 lakhs, withdrawal of full amount is permitted

Exit on Death

• On death 100% of the pension wealth amount will be payable to the nominee / legal heir of the subscriber
• There would not be any purchase of annuity / monthly pension

Pre-Mature Exit

• Permitted only after 5 years of participation
• Up to 20% of corpus can be withdrawn Tax-Free
• Minimum 80% to be invested in annuity for monthly pension
• If corpus ≤Rs. 2.5 lakhs, withdrawal of full amount is permitted

Partial Withdrawal

• Up to 25% of the contributions deposited can be withdrawn
• In the entire life span, up to 3 withdrawals can be made
• 1st withdrawal can be exercised 3 yrs after a/c opening
• 2nd & 3rd withdrawal can be exercised anytime after previous one

Fund Manager’s Performance

Disclosure:

NPS is regulated by Pension Fund Regulatory and Development Authority (PFRDA). ICICI Securities Limited is a PFRDA registered POP with Reg. no.: 05092018. ICICI Securities is just acting as distributor and all disputes with respect to such distribution activity, would not have access to SCORES/ODR, Exchange investor redressal forum or Arbitration mechanism.