HDFC National Pension Scheme

Here are some of the most important eligibility criterion for the individual to apply for the HDFC National Pension Scheme:

• To open this account, the individual should be between the age of 18 to 60 years.
• Based on the KYC norms the following documentation are required:
  a) Photo Id proof
  b) Date of birth proof
  c) Address proof
  d) Application form
  
• In case of Tier I:
  a) Minimum contribution for account opening is Rs.500
  b) Minimum amount payable for every contribution is Rs. 500
  c) Minimum Required Account Balance at the end of every financial year is Rs. 6,000
  d) Minimum number of contributions per annum should be at least once.  
• In case of Tier II:
  a) Minimum contribution for account opening is Rs.1,000
  b) Minimum amount payable for every contribution is Rs. 250
  c) Minimum Required Account Balance at the end of every financial year is Rs. 2,000
  d) Minimum number of contributions per annum should be at least once.
• For a Tier II account creation, the individual has to first open an active Tier I account for activating the Tier II account.
• Minimum contribution at the time of account opening is Rs. 1500 when a composite application is being made for Tier I and Tier II together.
• Submission of a cancelled cheque is required for composite application or Tier II or Composite application with the application form.

Features of HDFC National Pension Scheme

NPS offers exquisite features to individuals, allowing people to avail an opportunity that is an unique investment to save. Some salient features of HDFC National Pension Scheme:

1. Once you create an account, (PRAN) it remains the same allowing you no hassles when changing jobs or location. You can use NPS Calculator to know how much pension amount will you get.
2. You can also switch between the fund managers. For instance, if you are with HDFC National Pension Scheme, you can change it an NPS of a different bank that offers a different fund management system.
3. The subscriber has access to the NPS account online, as he or she is given a unique username and password.
4. Amount and frequency of contribution is highly flexible.
5. Prudently regulated - NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust
6. You can log onto the CRA / PFRDA Website and contact Call Center, Email or snail mail for help.
7. The maximum investment in equity can be upto 50%.
8. The PRAN account number remains the same, throughout the individual’s life.
9. There are 2 types of accounts available based on withdrawal from HDFC:
   1. Tier I
      1. This is a non-withdrawable account and unless the individual reaches the age of 60 years, they cannot withdraw the pension for the rest of the years.
      2. The subscriber has to close the scheme he or she reaches 60 years of age.
      3. However the individual can extend the scheme for 10 years, further under the condition that no new contributions can be made on the scheme. Also it is mandatory to annuitize 40% of the accumulated pension wealth. The option to annuitize 100% of the whole corpus is allowed as well.
   2. Tier II
      1. A Tier-II account is an optional voluntary savings account, where the subscriber is free to withdraw from the accumulated scheme amount any time.
      2. The facility is available to Indian citizens of India which includes Government employees who are mandatorily covered by NPS.
      3. There are also no restrictions on the number of withdrawals that can be made in Tier II.
      4. The individual can also separate nomination as well as scheme preference between Tier I and Tier II.
      5. One-way transfer of savings between tiers is allowed.
      6. There is no requirement for another KYC for Tier II account opening since a pre existing Tier I IRA Compliant account would already to active.
10. There is portability for NPS across industries and locations allowing a hassle-free arrangement for individuals.
11. The whole scheme is regulated by the PFRDA, ensuring transparency in the investments, monitoring regularly and a performance review of all the fund managers by NPS Trust.

Tax Benefits For HDFC National Pension Scheme

The following tax benefits are applicable on the HDFC National Pension Scheme:

For Salaried individual

1. Tax deduction possible for 10% of Salary (Basic + Dearness Allowance), under section 80CCD (1) of Income Tax Act, 1961 with a maximum of Rs.1.5 lakhs limit under section 80CCE.

For Self employed

1. Tax deduction possible for 10% of Salary (Basic + Dearness Allowance), under section 80CCD (1) of Income Tax Act, 1961 with a maximum of Rs.1.5 lakhs limit under section 80CCE.

Based on the Finance Bill 2015, any additional investment of Rs.50,000 is tax deductible under section 80CCD (1B) of Income Tax Act, 1961. This benefit will be effective from the financial year 2016 – 17.

Grievance Redressal as per Regulation 31 of  PFRDA (Redressal of Subscriber Grievance) Regulations, 2015: 

The details of the Ombudsman appointed are available on the PFRDA website – https://www.pfrda.org.in/. 

At present, Shri Narender Kumar Bhola has been appointed as the new Ombudsman in terms of the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015. 

Details of the ombudsman are as given below: 

Shri Narender Kumar Bhola 

Pension Fund Regulatory and Development Authority  

B-14/A, Chatrapati Shivaji Bhawan,  

Qutab Institutional Area, Katwaria Sarai, New Delhi- 110016  

Chhatrapati Shivaji Bhawan,  

Email ID: ombudsman@pfrda.org.in  

Landline No.: 011 -26517507 (Ext : 188)