Government Schemes

National Pension Scheme, Tax Benefits, Application Form, Calculator

National pension scheme
Mukesh Jindal
Written by Mukesh Jindal

National pension scheme – National pension scheme is one of the cheapest and the best scheme for Indian citizens who are working and expecting a good amount of monthly pension after the retirement.  The scheme is designed for all sectors of employees who have to pay a nominal amount basis of monthly under the scheme.  The employees have to pay a minimum of 1000 rupees per month under the scheme,  at the time of retirement the employees can avail the benefits of the scheme in the form of monthly pension.

In critical scenarios are cases the lump sum of 20% can withdraw by the employee and the remaining amount will continue under the scheme.  The should invest minimum 20% of the amount in the annuity which will reflect in their retirement stage.

This scheme is one of the finest scheme running successfully which was the was at earlier stages. Though the scheme benefits from the government authority are very less there is a consistent and prominent monthly pension will be given by the government.

To open a new account a nominal rupees 50 will be charged and care for maintaining the whole records per annum charges will be rupees 225 will be directed from the deposit of employee amount.  The card amount will be deducted annually.

The withdrawal amount of 20% from the investment under the scheme can be done before age of 60 years,  after the age of 60 years 60% can be withdrawn and the remaining 40% should invest in any of the annuity.

National Pension Scheme

There are two types of schemes,  tier 1 and tier 2.

Under tier 1,

  • Employee contribution under the scheme  is 10% from their basic salary,  to add on the employees should pay the same or equivalent amount under the scheme
  • In nongovernment funds, the amount will be invested in various bonds,  shares and other equity options available
  •  In government forms, the amount will be government securities.

Under tier 2,

  • The employee has to pay rupees 1000 at the time of account opening,  the amount of rupees 50 will be deducted for the opening of the account.
  •  Depends on the employee financial status,  the two have deposit on monthly basis
  • At the end of annual year,  a minimum of 2000 rupees should be in the account


The main objective of the scheme to provide secure life to the employees who belong to India after the retirement.  The steam helps employees to invest the minimum amount of rupees 1000 on monthly basis to avail the benefits of a national pension scheme.

The scheme and its benefits are purely transparent and there is no other involvement.  Depends on the level of age group and employee status can invest in the scheme.  Tax exemptions can also available the employees.

National Pension Scheme

Tax Benefits of National Pension Scheme

The main benefits of national pension scheme is,

  • Secure the financial status even after the retirement
  • Start with a nominal amount for availing scheme benefits
  • The purchase of annuity with the investment purely belongs to the employee
  • Even though the rate of interest and benefits provided by the scheme is nominal,  it brings a safe and secure life even after the retirement
  • In any circumstances before 60 years of age, 20% of the amount can be withdrawn,  after 60 years of age employee able to withdraw 60% of the amount and the remaining 40% should invest in annuity bonds.

Eligibility and conditions applying for National Pension Scheme

The eligibility criteria to avail this game is pure,  the employee should belong to India and working in any of the company.

Debates on employee and employer association availing the scheme may vary.  The employee who wants to undergo the scheme have to specify the desired proceedings as the employee comes under tier 1 or tier 2 category

Required documents

Applying for the scheme is just by submitting employee details along with the identification of the employee working in their respective company.  The company should also attach the employee designation qualification and work.  Based on the details provided by the employee and employer national pension scheme availing process and the category tier 1 or tier 2 will be decided.

The employee can directly contact national pension scheme authorities in the local or else head office along with the details of the employee in a respective company.

National Pension Scheme

Contact details

Any company human resource officials are able to provide complete national pension scheme details or else employee can directly visit the portal to know the scheme details and the complete process to avail the scheme.

Employee duly filled application form is the mandate to start the process of verifying validity and desires of a particular employee to add in the national pension scheme.

Some important links


National Pension Scheme PDF

Calculate Your Pension

For Pension calculator visit website:-


National pension scheme started in the year of 2006. This came into the picture for providing a secure financial status to the employees after their retirement.  Any government or non-government employees can avail this scheme irrespective of their other additional benefits are pension schemes.  Under the scheme, the employee invested amount will be invested into various set off for gaining better outcomes. There are 2 different types of available, under tier 1 scheme, an employee has to pay only 10% of the amount from the basic of the salary,  the remaining or equivalent amount will be paid by the employer on monthly basis.  This is an automatic direction process which will deduct based on the employee working days and the basic amount paid for a month.

Under this tier 1 scheme,  the amounts of investment will be invested in various sectors like shares, equity bonds,  secure bonds and many other.  It can be invested in various types of government and nongovernment investments. Coming to tier 2,  the employee has to pay rupees 1000 at the stage of account opening and monthly rupees 250.  This will continue until the employee age 60 years.  The investment will be invested in purely government related secure bonds only.  The employee should maintain a minimum of 2000 rupees per annum to avoid discontinue of the scheme.

About the author

Mukesh Jindal

Mukesh Jindal

My name is Mukesh Jindal, and I am from New Delhi, India. I am an engineer by profession. I am employed by an IT company in which I work. My topics of interest include technology, mobile, and apps.

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