NPS Scheme: know the easy way to open online NPS Tier-II account

Investing in NPS Tier II- Tax Saver Scheme provides tax deduction up to Rs 1.5 lakh.

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People working in the government and private sector get the facility to open two types of accounts under the National Pension Scheme (NPS). They can open a Tier-1 account (NPS Tier I account) and Tier-2 account (NPS Tier II account). Any government or private sector employee who contributes to the NPS can open an additional pension account under the scheme and can avail additional pension after retirement. A tier-1 account is a pension account. At the same time, the Tier-2 account is a voluntary savings account.

Tier II Account is a good option for employees to save and invest. Investment in Tier-II- Tax Saver Scheme provides tax deduction up to Rs 1.50 lakh. The person opening an NPS Tier II account gets unlimited online withdrawals and can transfer the deposit amount to their bank account whenever they want. However, people working in the private sector do not get tax benefits on withdrawal from the Tier II account. But government employees get tax benefit on opening a Tier-2 account. However, its lock-in period is three years. If government employees want to save more, they can open an NPS Tier II account and avail of tax deduction up to Rs 1.5 lakh under section 80C of income tax.

Can not change the amount of PF

The lock-in period of the pension account opened under the NPS Tier II Tax saver scheme is three years. That is, you cannot change the amount deposited in it for three years. If you make any change in the amount of PF deposited in it after three years, it will be considered as a fresh investment and its lock-in period will also be three years.

How to open an online Tier II Account

1.     Firstly go to the NPS website https://enps.nsdl.com and click on the National Pension System tab on the home page.

2.     Then click on the Tier II Activation option. A new page will open after doing this.

3.     On this, you will have to fill your captcha by entering your Permanent Retirement Account Number (PRAN), Birth Date, PAN Number (PAN), and click on the Verify PRAN option given below.

4.     After this, an OTP will appear on your registered mobile number. After entering OTP, fill in the requested information and click on the Validate Aadhaar option.

5.     By doing this you will get an acknowledgment number. Then click on OK.

6.     After this, you have to choose a pension fund manager (PFM) and investment option. In this, you can choose Auto or Active choice.

7.     After this, click on the button Save and proceed. After this, fill in the details of your nominee and click on the Save and proceed button.

8.     After this, you will have to upload a scanned copy of your PAN card and canceled the check. 

9.     After all the documents are uploaded, you can deposit money in your NPS Tier II Account. This account can be opened by depositing a minimum of 1000 rupees.

10. You will get a receipt as soon as you deposit the money. After this, you can e-sign using Aadhaar on your application.

11. As soon as you enter the Aadhaar number, an OTP will come on your registered mobile. Fill the OTP in the space provided.

12. After e-signing your application, you download it and sign it and send it to the NSDL head office in Mumbai by a simple post. Your NPS Tier II Account will open.