Indian citizens between the age of 18 to 60 can opt for the scheme.
Minimum annual deposit should be Rs. 6000
Ages limit is 18 to 60 years
Withdrawal at the time of retirement is distributed into lumpsum and annuity scheme
Maximum 40% of the total corpus can be withdrawn tax-free
40% must be invested in annuity scheme for regular monthly income post retirement
Remaining 20% can also be invested in annuity plan or withdrawn as lumpsum with tax applicability.
Tier 1 Account: These accounts have restrictions on premature withdrawal. These are more of corporate accounts where in the employer also contributes to employee’s NPS account. Wipro was the first private organisation to start with NPS accounts for employees.
Tier 2 Account: These accounts are more of voluntary accounts which have no restriction over withdrawals. To open a Tier 2 account, Tier 1 account is mandatory.