Chinese tech giant Huawei said on Monday it had developed a new way of making semiconductors that could get around its U.S.-enforced lack of access to the most advanced chipmaking equipment. Huawei has in recent years been at the centre of a geopolitical standoff after Washington warned its
World Tarot Day 2026: The most misunderstood tarot cards and what they actually meanPeople tarot as entertainment or fear it because of the dramatic social media readings. But tarot was never meant to work through fear; it is a symbolic tool. Updated on: May 25
From mirrors to mood lighting, these 5 budget-friendly decor tricks can make small homes look surprisingly luxuriousWant to upgrade your home into a luxurious space? Here are some budget-friendly decor ideas you can consider for a beautiful home. Published on: May 25
A Bahraini court sentenced nine defendants to life in prison and two others to three years in jail for collaborating with Iran’s Revolutionary Guard Corps (IRGC) to carry out what it described as “hostile and terrorist acts” against Bahrain
Tarot vs Astrology: Which one can predict your future better? An expert breaks it downAstrology explains cosmic timing and patterns. Tarot explains your emotional experience of those patterns. One gives you the map, the other acts like a mirror. Updated on: May 25
The Japanese fruit ‘sando’ is becoming India’s favourite summer dessert; take a look With fluffy milk bread, clouds of whipped cream, and jewel-like slices of fresh fruit tucked inside, the Japanese sando has become India’s go-to dessert Updated on: May 25
Madhuri Dixit serves ‘a little bit of drama’ as she gives classic white saree a modern twist with chic jacketMadhuri Dixit proves age is just a number as she stuns in ivory saree with floral prints, layered with a sleek jacket, blending elegance with modern drama. Published on: May 25
3 elephant calves die within 17 days in Chhattisgarh’s DharamjaigarhEight elephant calves have died in Dharamjaigarh forest division over the past five months due to drowning, getting trapped in marshland, etc Published on: May 25, 2026 1:27 PM IST By Ritesh Mishra Share via Copy link Three
National Pension System: Key Features, Eligibility, Returns, Tax Benefits, And How To Open NPS Account
National Pension System: Key Features, Eligibility, Returns, Tax Benefits, And How To Open NPS Account
The PFRDA introduced the NPS to help individuals build a retirement corpus. Launched for government employees in 2004 and all citizens in 2009, NPS offers tax-efficient returns.
The Pension Fund Regulatory and Development Authority (PFRDA) introduced the National Pension System (NPS) as a long-term retirement savings scheme to help individuals build a pension corpus during their working years. Over the past decade, the NPS has emerged as one of the most tax-efficient retirement products in India, combining market-linked returns with disciplined long-term investing.
The scheme was initially launched for government employees in 2004 but was later opened to all citizens of India in 2009. Today, it is widely used by salaried employees, self-employed professionals and corporate employees seeking retirement security.
Also Read : 12 Major financial rules changing from 1 April 2026: Banking, tax, gold– check what all will impact your pocket
The National Pension System is a voluntary, defined-contribution retirement savings scheme regulated by the PFRDA. Under the system, subscribers contribute regularly to an NPS account during their working years, and the accumulated corpus is invested in a mix of equity, government bonds and corporate debt through professional fund managers.
At the time of retirement (generally at age 60), subscribers can withdraw a portion of the accumulated corpus as a lump sum and must use the remaining amount to purchase an annuity that provides a regular pension.
The scheme is designed to encourage long-term retirement savings with low fund management costs compared to traditional retirement products.
Also Read : March 31, 2026 financial year-end checklist: Tax savings, investments and deadlines you cannot afford to miss
Key Features of NPS
Types of NPS Accounts
NPS offers two types of accounts for subscribers.
Tier I Account
The Tier I account is the primary retirement account and has withdrawal restrictions. Key characteristics are:
Tier II Account
The Tier II account is a voluntary savings account linked to Tier I. Features include:
Investment Options Under NPS
Subscribers can choose how their contributions are invested across different asset classes.
Two investment choices are available.
Active Choice
Under this option, investors decide the allocation between equity, corporate bonds and government securities. Equity exposure is capped at 75 per cent.
Auto Choice
In this option, the asset allocation is automatically adjusted according to the investor’s age. Equity exposure gradually reduces as the subscriber approaches retirement.
Also Read : LPG e-KYC mandatory for domestic LPG customers: Direct link of Indane, Bharatgas, HP and step by step process explained
Who Manages NPS Funds?
Subscribers can choose from several PFRDA-registered pension fund managers.
Some major fund managers are SBI Pension Funds, LIC Pension Fund, HDFC Pension Management Company, UTI Retirement Solutions, and ICICI Prudential Pension Funds.
These professional fund managers invest subscriber contributions according to the chosen asset allocation.
Tax Benefits Under NPS
One of the biggest attractions of the NPS is its tax efficiency.
This means an investor can claim total deductions of up to Rs 2 lakh in a financial year under the old tax regime.
Withdrawal Rules:
The withdrawal structure is designed to ensure that subscribers use the corpus for retirement income.
At Retirement (Age 60)
Premature Exit (Before 60)
If a subscriber exits early:
If the accumulated corpus is Rs 5 lakh or less, the subscriber can withdraw the entire amount as a lump sum.
Partial Withdrawal
Subscribers can withdraw up to 25% of their contributions for specific purposes such as:
Partial withdrawals are allowed after three years of joining NPS.
New Corpus-Based Withdrawal Rules Introduced In 2025
Returns Under NPS
NPS does not guarantee fixed returns since investments are market-linked. However, historically the scheme has delivered competitive long-term returns.
Average annual returns from major asset classes:
Because of the diversified portfolio and low costs, the NPS is often considered one of the most efficient retirement vehicles in India.
Opening an NPS account is a relatively simple process and can be done either online or offline.
Online Method
Subscribers can open an account through the official NPS portal managed by National Securities Depository Limited (NSDL).
Steps:
Offline Method
Investors can also open NPS accounts through Points of Presence (PoPs) such as banks and financial institutions.
For this, collect the NPS application form from a bank or PoP, submit identity and address proof, provide photographs, make the first contribution, and receive the PRAN card by post.
One of the reasons the NPS has gained popularity is its extremely low cost structure compared to other investment products.
These costs are significantly lower than most mutual funds and insurance-linked retirement plans.
NPS vs Other Retirement Options
Because of equity exposure, NPS offers the potential for higher long-term returns, though it also carries market risk.
The NPS is particularly suitable for:
The National Pension System has evolved into one of India’s most important retirement planning tools. With low costs, tax efficiency and flexible investment choices, the scheme allows individuals to systematically build a retirement corpus over decades.
However, investors should remember that NPS is a long-term retirement product, and liquidity is limited compared to other investment options. Therefore, it is best used as a core retirement savings instrument rather than a short-term investment vehicle.
Also Read : Buying gold from Dubai? Here’s an essential guide of Dos and Don’ts before you purchase
For individuals looking to build a disciplined retirement corpus while benefiting from tax deductions, the NPS remains one of the most compelling options available in India’s financial landscape.
Disclaimer:Disclaimer: The views and investment tips shared in this article are for general information purposes only. Readers are advised to consult a certified financial advisor before making any investment decisions.
Source : News18.com
Source: OfficeNewz
Related Posts: PFRDA Announces Expert Committee To Develop Framework For Assured NPS Payouts PFRDA Revamps NPS Exit Rules PFRDA Aims To Enhance Transparency And Stability In NPS PFRDA Plans 3 New NPS Pension Schemes To Offer Flexibility PFRDA Plans New Post-Retirement Products To Outperform Annuities Under NPS Indian national indicted for smuggling individuals from across Canadian border into U New York woman charged with smuggling individuals from India into U Individuals must sacrifice ego Key Amendments In PFRDA Rules Give More Freedom To National Pension System PFRDA Issues Latest Circular On OTP Based Authentication
The Canadian Grand Prix was the race in which the Formula 1 title battle finally came alive this year. It was also, however, the race in which it took a potentially decisive turn, putting a huge dent in George Russell's hopes of beating his 19-year-old Mercedes team-mate Kimi Antonelli to the
50 minutes ago
CBSE Class 12 answer sheet scanned copies application window ends today, direct link hereCBSE Class 12 answer sheet scanned copies application window will close today, May 25, 2026. The direct link to apply is given here. Published on: May 25
51 minutes ago
Microsoft techie couple in Noida breaks down ₹1.6 lakh monthly expenses, says city feels balanced despite rising costsA Microsoft couple in Noida revealed they spent around ₹1.6 lakh monthly while balancing work, lifestyle and family needs. Published on: May 25
50 minutes ago
A CBSE Class 12 student has raised serious concerns over the board’s re-evaluation process after claiming the Physics answer sheet uploaded under his roll number does not belong to him. The student shared comparisons of multiple answer sheets and demanded an urgent investigation into the alleged
51 minutes ago
Thyroid disorder cases have been gradually rising over the past few years, especially in younger adults and the younger working generations. Even though genes and autoimmune disorders play a role, the way we live our lives is becoming a reason for thyroid problems. We speak to Dr Aravind Badiger
52 minutes ago
Sandhu finishes T-63, Sterne wins after gap of 13 yearsSandhu finishes T-63, Sterne wins after gap of 13 years Published on: May 25, 2026 1:47 PM IST PTI Share via Copy link Rinkven , Indian golfer Yuvraj Sandhu endured a difficult final day to finish T-63 at the Soudal Open here
51 minutes ago
Mumbai's old building redevelopment market grows 16% in 2025; Momentum continues in 2026: DataMumbai real estate: A total of 1,094 development agreements (DAs) were signed between January 2020 and March 15, 2026, according to data from Knight Frank India Published on: May 25
3 hours ago
New Delhi: Uttar Pradesh Chief Minister Yogi Adityanath issued statewide directions on Bakrid across the state. In a meeting with officials, Adityanath reviewed the festival’s preparedness and also looked into Ganga Dussehra arrangements and actions against illegal activities
3 hours ago
Chinese artificial intelligence startup DeepSeek will make permanent a 75% price cut on its flagship V4-Pro artificial intelligence model, keeping prices at a quarter of their original level, the company said in a statement on Saturday. DeepSeek did not disclose whether the permanent
3 hours ago
For years, carbohydrates have been put on trial in the fitness world. Scroll through social media, and you will find countless posts blaming carbs for weight gain, sluggishness, and poor fitness results. Many athletes and fitness enthusiasts respond by cutting carbs drastically
3 hours ago
‘Work culture is not hell’: Man who worked in Europe, UK, Canada and US says Bengaluru’s real problem is commuteA man claimed Bengaluru’s commute, not work culture, is the real reason many professionals feel exhausted. Published on: May 25, 2026 10:56 AM IST By Mahipal Singh Chouhan Share
3 hours ago
Sunrisers Hyderabad’s victory over Royal Challengers Bengaluru in their last league outing has brought the curtain down on the top-two battle in IPL 2026, with both finalists now officially confirmed. Although RCB walked away on the losing side
3 hours ago
, which has a global market capitalisation of $343 billion, has advocated modernising India’s power grid to help drive the country’s AI dream, underscoring the intricate linkages and dependencies across multiple domains and utilities crucial to acing the technology that's now grabbing 80% of
3 hours ago
Aishwarya Rai's stylist gets emotional about dressing 'icon' for her high-stakes Cannes return: 'What a week it’s been'Stylist Mohit Rai hails Aishwarya Rai as Cannes ‘legend’, silencing critics with a masterclass in avant-garde couture: ‘Showing the children how it’s done’
3 hours ago
Uttar Pradesh groom murder main accused killed in police ‘encounter’Police said Ravi Yadav, the accused, who carried a reward of ₹1 lakh on his head, was on a motorcycle when he was asked to stop during vehicle checking Published on: May 25, 2026 10:54 AM IST By HT Correspondent Share via
3 hours ago
Girls Aloud star Nicola Roberts has announced the birth of her first child. In a social media post, the singer, 40, said her daughter had "arrived healthy and content a couple of weeks ago at 38 weeks" and was "thriving". Photos from her Instagram account show the star holding her baby
3 hours ago
Uber's board met on Saturday to discuss raising its offer for after a major shareholder rebuffed Uber's bid that would value the German food delivery group at over 11.5 billion euros ($13.39 billion), the Financial Times reported on Sunday
3 hours ago
Editorial independence is core to our work. Some links may earn us a commission, without influencing our opinions.Looking for a compact bedroom air purifier? Here's why Qubo R250 is a solid choiceThe compact Qubo R250 punches above its weight with rapid HEPA filtration and smooth smart controls
3 hours ago
May 25 Birthday Horoscope: Here's what the tarot cards have in store for you this yearIf your birthday falls on May 25, here’s what your year ahead looks like, as per Tarot. Published on: May 25, 2026 11:00 AM IST By Kishori Sud Share via Copy link If you were born on May 25
3 hours ago
Opposition parties in Kerala accused the Congress of double standards after Kerala’s former chief electoral officer assumed charge as the secretary to Chief Minister VD Satheesan on Sunday, PTI reported. Rathan U Kelkar, a 2003-batch Kerala cadre Indian Administrative Services officer
3 hours ago
In late April, India's Sun Pharmaceuticals agreed to pay $11.75bn (£8.59bn) to acquire New York-listed women's health and biosimilars firm Organon & Co. It marked the biggest overseas acquisition by an Indian company in nearly two decades and followed a string of high-profile international deals
3 hours ago
‘Laughed at me, called me stupid’: Founder of AI data collection firm on Pronto CEO Anjali SardanaHuman Archive founder Rushil Agarwal has taken a swipe at Pronto's Anjali Sardana amid the row around the Bengaluru startup recording inside customers’ homes Updated on: May 25
3 hours ago
In the English translation of Franz Kafka’s short story, Metamorphosis, published in 2007, Michel Hofmann translated the famous opening line (which included the German word “Ungeziefer”, generically meaning insect) in this manner: “When Gregor Samsa awoke one morning from troubled dreams
3 hours ago
Marco Rubio visits Taj Mahal in Agra with wife Jeanette | VideoAfter the Agra visit, he is scheduled to continue his trip to Jaipur later in the day. Updated on: May 25, 2026 10:46 AM IST By HT News Desk Share via Copy link US secretary of state Marco Rubio visited the Taj Mahal in Agra on Monday
3 hours ago
Full Moon May 2026: Astrologer shares how this intense Blue Moon might impact your zodiac signAccording to astrologer Sidhharrth S Kumaar, every zodiac sign could experience this lunar energy differently. Here's what this Blue Moon may mean for you. Updated on: May 25
3 hours ago
Cardiologist reveals the real cause of heart attacks that most people overlook and it’s not just ‘bad cholesterol’Could your gut health be affecting your heart? A cardiologist explains how inflammation, poor sleep, stress, and unhealthy habits may raise heart attack risk. Published on: May 25
3 hours ago
Turkish riot police fired tear gas and forced their way into the main opposition party’s headquarters to evict its ousted leadership on Sunday (May 24, 2026), deepening a crisis at the heart of Turkiye’s democracy. Clouds of tear gas billowed within the Republican People’s Party
3 hours ago
