The National Pension Scheme (NPS) is a government-sponsored retirement savings program in India. It allows individuals to contribute regularly during their working years and receive a pension after retirement at age 60.
Key NPS Rules
Minimum 40% annuity — At least 40% of the corpus must be used to purchase an annuity
Tax benefits — Contributions up to ₹2 lakh qualify for deductions under Sections 80CCD(1) and 80CCD(1B)
Flexible investment — Choose between equity, corporate bonds, and government securities
Partial withdrawals — Allowed after 3 years for specific purposes