Post Office Saving Schemes: National Pension System (NPS) Income Tax Benefits, Transaction Charges

National Pension System (NPS) refers to a contributory pension system whereby contributions from subscribers along with matching contributions from respective governments as an employer, are collected and accumulated in an individual pension account. As a subscriber under NPS you are provided with an individual pension account identified by Permanent Retirement Account Number (PRAN) which is unique and portable across locations and employments. The Pension Fund Regulatory and Development Authority (PFRDA) is the nodal authority to manage NPS operations.

India Post also offers the facility of opening NPS accounts, among the many savings schemes that it offers.

If you're opening an NPS account with India Post, this is what you must know:

Services offered by India post for NPS subscribers
India Post allows subscribers to open new NPS (all citizens model) account, facilitates subsequent contributions, all types of service requests and exit / claim withdrawal requests, it stated on its website, indiapost.gov.in.

Types of accounts under NPS 
There are two types of accounts that are opened under NPS: Tier I and Tier II. Tier I is a pension account and is mandatory. Tier II is a savings account and is optional.

Income Tax benefits offered by NPS
There is an additional tax benefit up to Rs 50,000 for investment in NPS (All Citizen Model), said India Post.

Finance cap on NPS accounts