About NPS

The New Pension Scheme (NPS) is an effort of the Indian government to provide pension benefits to all inhabitants of India. Enrolling in this system allows anybody, whether working in the private sector, self-employed or a professional, to receive pension benefits and plan for retirement. The NPS is by far the most straightforward, straightforward, and low-cost pension plan. Because the plan is governed by the Indian government, it is one of the safest investment alternatives available, with total capital protection.

Because the NPS is a defined contribution plan, there are no guarantees on investment. The benefits will be determined by the amount contributed and the investment growth up to the moment of withdrawal from the NPS. It does not guarantee returns or inflation protection because it is a market-linked instrument. Build your plan today with us.


The National Pension System (NPS) is liquid and allows for early withdrawal. There is now no policy on loans against the NPS, although this may change in the future.

Exit Option

If you retire before the age of 60, you must utilize 80 per cent of your Tier-I account funds to purchase the annuity. You will be able to take a lump-sum withdrawal of the remaining 20% of your funds.

Tax Implications

In each financial year, you can claim a tax deduction on investments up to Rs 1.5 lakh under Section 80C and an extra Rs 50000 under Section 80CCD of the Income Tax Act. However, under existing legislation, the sum received from NPS at the end is taxed. Unlike EPF and PPF, which are EEE (exempt on contributions made, exempt on accumulation, taxed on maturity), this is an EET (exempt on contributions made, exempt on accumulation, taxed on maturity) situation (exempt, exempt, exempt at all stages)

NPS for Government Employees

All government employees (both federal and state) who entered the service after January 1, 2004 will have a required NPS account instead of a GPF account. The National Pension System (NPS) will operate on a defined contribution basis and will be divided into two parts: Tier I and Tier II. After 60 years of service, government employees can leave the Tier I system, but they must deposit 40% of their pension funds in a life insurance firm to acquire an annuity. If a member leaves the NPS before reaching the age of 60, he or she will be required to pay an annuity equal to 80% of the pension amount. Build your plan today with Complete Circle Capital Pvt. Ltd.

Tier I account is an obligatory no-withdrawal pension account in which the government will deposit an identical amount and the monthly contribution will be 10% of basic pay.

Tier II account are a type of voluntary withdrawal savings account that allows people to withdraw money at any time. The government will make no contribution to this account.