National Pension System | Arihant Capital
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  • INTRODUCING NPS

    Get your retirement secured with NPS

    Invest in National Pension System with Arihant - an easy, affordable tax efficient retirement savings solution for almost anyone

    • Safe savings solution launched by Government of India & regulated by PFRDA

    • Tax benefits under Section 80C & 80CCD

    • Affordable & tax-efficient retirement product with low minimums

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    One-Time Contribution to NPS

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    Access Your NPS Account

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    NPS VATSALYA

    Start investing for your child's future today

    A PFRDA-backend pension scheme under NPS - open for children under 18,
    managed by parents or guardians.

    For minors under 18

    Parents or guardians open & operate the account.

    Market-linked returns

    Long-term wealth creation through disciplined investing.

    Early start advantage

    Build the habit of financial planning from a young age.

    Seamless transition

    Converts to a regular account at age 18.

    NPS Calculator

    Forecast how much wealth you can build at retirement with NPS and how much you can withdraw at age 60.

    ₹5001,00,000
    18 yrs59 yrs
    6%14%
    40%60%
    4%10%
    Monthly Pension
    ₹22,793
    Total Wealth Gained
    ₹1.14 Cr
    Lump Sum Withdrawal (at 60)
    ₹68.38 L
    Start Investing in NPS →

    Key Features

    Saving for retirement can be a daunting task, but it doesn’t have to be. With a managed NPS account, you can build a portfolio to grow your savings to fund the retirement you have always dreamt of.

    Who can apply

    Every Indian citizen (including NRIs) who is between 18–65 years of age is eligible to invest in NPS. However, the person should not be undischarged insolvent or of unsound mind.

    KYC requirement

    To apply for the NPS, subscribers should comply with the Know Your Customer (KYC) norms as detailed in the subscriber registration form.

    1.5 lacs
    deduction under IT Section 80C
    Section 80C + additional 80CCD

    Tax benefit under IT Section 80C up to Rs 1.5 lacs, plus an additional Rs 50,000 deduction exclusively for NPS under Section 80CCD — over and above the 80C limit.

    10%
    of employee salary — Corporate NPS
    Corporate NPS deduction

    Under Corporate NPS, the employer can deduct 10% of the employee's salary as business expense, and the same amount is allowed as deduction for the employee with no upper limit.

    Tier I — Pension account
    Tier I

    Mandatory account with tax benefits and restricted withdrawals. The primary NPS account — required to open Tier II.

    Tier II — Investment account
    Tier II

    Optional account with no tax benefit, but the corpus is withdrawable anytime. Requires an active Tier I account.

    Auto choice

    Investment in equity, corporate debt and government securities is made in a pre-defined proportion depending on the investor's age — automatically rebalanced over time.

    Equity (E) Corporate Bonds (C) Govt. Securities (G)
    Active choice

    Investors have the freedom to design their own portfolio allocation between equity, corporate debt, government securities, and alternative assets like Real Estate Investment Trusts, tailored to their needs.

    + Alternative Assets (A)
    500
    minimum per contribution — Tier I
    Tier I minimums

    Start with as little as Rs 500 per contribution. The minimum yearly contribution for Tier I is Rs 1,000.

    1,000
    minimum to open — Tier II
    Tier II minimums

    Minimum opening investment of Rs 1,000 for Tier II. No compulsory yearly contribution. Subsequent contributions from just Rs 250.

    At maturity — age 60 (Tier I)

    Withdraw 60% of the corpus tax-free from Tier I.

    40% must be reinvested in a life annuity product for regular pension — fully exempt from tax at reinvestment.

    Subsequent annuity income is taxable as per your applicable income tax slab.

    Premature exit & Tier II

    Closing NPS before retirement: up to 20% lump sum withdrawal; 80% must be annuitised.

    Partial withdrawal up to 25% of own contributions after 3 years, for specific purposes — up to 3 times. Tax-free.

    Tier II: withdraw anytime, but the amount is taxable at applicable slab rate.

    National Pension System for Corporates

    Contribute towards your employee retirement savings with Corporate National Pension System. NPS plans offer a good way for employees to save money for their future, and for both employers and employees to save on taxes. Whether you are a small business or a large corporate, you can register for Corporate NPS with Arihant to help your employees plan their retirement. Here are 3 reasons why you should offer NPS benefits as part of compensation package to your employees:

    recruit-and-retain
    Recruit and Retain

    Adding NPS investment to your employees’ compensation package gives you that extra edge to stand out amongst your competitors. Attractive benefits are now a must.

    incentivize-performance
    Incentivize Performance

    Boost your employee performance by using retirement perks as incentives. When your employees meet specified goals, reward them by contributing towards their NPS account.

    tax-perks
    Tax Perks

    Employer contribution towards NPS are tax deductible as business expense (10% of employee’s salary)

    Let's get started

    Tell us more about your company so we can set you up with NPS for your employees

    Why invest in NPS with Arihant?

    Authorized POP NPS provider

    We are registered under PFRDA to act as a point of presence (PoP) to help you make investments under National Pension System.

    Our advisors across 700+ investment centers pan India will help you with your NPS

    Get solid advice – at no cost

    We just don’t help you with investing in NPS but take a step further. We make your retirement planning simple, jargon-free and stress-free.

    From planning to execution, our advisors will work with you to get a clear understanding of your current financial situation and find the best ways to save for retirement.

    Robust investing tools

    Get easy-to-use online platform to invest in NPS with us along with professional insights from our team of specialists.

    How to invest in NPS?

    1

    Fill in the NPS application form

    Keep your Aadhaar (or PAN), passport size photo, scanned image of signature and mobile ready

    2

    Pick your pension plan and investment mode

    Select from eight pension funds and decide your asset allocation

    3

    Make contribution in your account

    Pay through net banking or your debit or credit card

    4

    Get your PRAN

    After your payment is approved, you’ll get a unique permanent retirement account number (PRAN)

    That’s it!

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    FAQs

    National Pension System (NPS) is pension cum investment scheme initiated by Government of India to provide old age security to citizens of India. It is a pure retirement pension plan, in which you can get a stable income with tax benefits after your retirement and it offers you the option to choose from different pension plans based on your risk profile.
    Officially launched for government employees in 2004, NPS was rolled out for all citizens of India on May 01, 2009. In simple words, NPS is a defined, voluntary contribution scheme initiated by the Indian government that is market-linked and managed by professional fund managers.
    Contributions made by individuals to a National Pensions Scheme accumulates until retirement and the corpus growth continues via market-linked returns. It is regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA). Contributions made towards NPS are also eligible for tax benefits.
    Individuals can register and obtain a subscription for the National Pension System through the online platform eNPS. Registration for the scheme can be done in the following steps.
    Step 1 – Go to the eNPS portal available at the official website of the National Pension System.
    Step 2 – Choose your subscriber type from the available options ‘Individual Subscriber’ and ‘Corporate Subscriber’.
    Step 3 – Choose your suitable residential status - Citizen of India or NRI.
    Step 4 – Opt for either Tier I account type or both accounts as a choice of the former is mandatory for long-term savings.
    Step 5 – Enter your PAN details and select Arihant Capital as your PoP. It is ideal to choose a PoP with whom you have an existing relationship as it makes NPS subscription and management easier.
    Step 6 – Upload the scanned copy of your PAN card along with a cancelled cheque. The image format should be in .jpg, .jpeg or .png format with a file size of 4KB to 2MB.
    Step 7 – Upload your scanned photograph and signature in the same format and size as above.
    Step 8 – Once routed to the payment gateway, proceed to pay the required charges via online banking.
    Step 9 – With the completion of payment, your Permanent Retirement Account Number (PRAN) will be generated.
    Once the PRAN is allotted, an applicant needs to proceed with either of the following steps for authentication. E-Sign option for authentication
    • On the E-sign/Print & Courier page, choose the E-sign option.
    • Authenticate with OTP sent to the mobile number registered with your Aadhaar card.
    • After Aadhaar authentication, the registration form is signed successfully, and you do not need to send its physical copy.
    A pool of money is collected in different NPS schemes, which is managed by professional pension fund managers who are experts in investing and managing money. This ensures that you don’t have to worry about investing.
    NPS is a long-term investment instrument to save for your retirement. It is a market-linked product, which means a portion of money invested in NPS goes towards equities. The returns in NPS schemes are, therefore, volatile, and not guaranteed. However, historically NPS has delivered higher returns compared to other government-initiated tax-saving investments like PPF, in the long-run.
    Individuals can claim tax benefit under Sec 80 CCD (1) with in the overall ceiling of 1.5 lac under Sec 80 CCE. In addition to this, an additional deduction for investment up to 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of 1.5 lakh available under section 80C of Income Tax Act. 1961. However, there is no tax benefit on investment towards Tier II NPS Account.
    Moreover, after the NPS subscriber attains the age of 60, up to 40 percent of the total corpus withdrawn by them in lump sum is exempt from tax.
    However, in case of annuity purchase, while the amount invested in annuity is fully exempt from tax, the annuity income received in the subsequent years will be subject to income tax.
    If you have invested in Tier-I plan, premature withdrawal is not allowed from the scheme, however for some specific purposes to the extent of 25% of employee contribution, in total three tranches. Partial withdrawals from the NPS are tax-free.
    However, if you close your NPS before retirement, you can withdraw upto 20% of the corpus and remaining 80% will have to be utilized for purchase of annuity.
    Investor in Tier II plan can withdraw money anytime, but it will be taxable at the slab rate.
    All NPS FAQsright-arrow-awards

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