The Government of India offers a wide variety of investment schemes that enable Indian investors to create huge savings, while also availing tax benefits. One such scheme that allows investors to avail tax deductions of up to ₹200,000 per annum is the National Pension Scheme (NPS). Touted as one of the best retirement scheme cum market-linked products, NPS is available to Indian and NRI investors. Interested investors can open their NPS account online as well as offline. Here’s a step-wise guide on opening NPS accounts online
How to open NPS account online?
Log on to NPS website
To begin your NPS investments, you need to log on to the NPS Trust website at https://enps.nsdl.com/eNPS/NationalPensionSystem.html. As an individual investor, you need to click on the registration tab and choose the ‘individual’ tab.
Enter PAN/Aadhaar number
Next, you need to enter your PAN or Aadhaar number. An OTP will be sent on your registered mobile number, which you must enter to gain access to the website.
Choose the account type
You now need to choose between a Tier I and Tier II account. Read the tier-wise NPS scheme details and select the appropriate account.
Input your personal details in the NPS form
Once you’ve selected the account type, you have to enter your personal information in the scheme form. If you log in with your Aadhaar number, most details will be pre-filled, whereas if you opt for PAN, you will need to enter your details manually.
Select your preferred pension fund manager, investment mode and mix
You now need to choose any one of the eight pension fund managers listed in the drop-down menu. Also, you need to select the investment mode. There are two modes – auto and active. If you choose the auto mode, your equity allocation will change with age, whereas if you choose the active mode, you can decide the mix and specify how you would like the corpus to be spread across fund classes.
Assign your nominee
Like with every investment scheme, you now need to assign a nominee for your NPS investments as well.
Upload your photograph and signature
After filling the form, you need to upload your photograph (if you opt for PAN for registration). You also need to upload a scanned picture of your signature.
Make the contribution and get your PRAN activated
Depending upon the account you’ve selected, you can make your contribution. Tier I account holders must make a minimum contribution of ₹500, whereas Tier II account holders must contribute at least ₹1,000. The contribution can be made through net banking or bank cards. Once the payment goes through a Permanent Pension Account number will be allotted.
You can now download the form, attest your photo on it and sign it. Mail the form to the CRA office within 90 days. Once the account is opened, you can avail the many NPS benefits that go with it.
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