Difference between New Pension Scheme (NPS) and Atal Pension Yojana (APY)

Recently Central Government launched one more pension scheme called Atal Pension Yojana. So what is the difference between existing New Pension Scheme (NPS) and Atal Pension Yojana (APY)?

Difference of NPS and APY

Let us point one by one.

1) Age of joining

The age for joining the New Pension Scheme (NPS) is 18-60 years. Whereas for Atal Pension Yojana (APY) the age eligibility is 18-40 years.

2) Who can join?

All Indian citizens can join NPS (whether they are resident or non-resident). Whereas for APY only Resident Indians are allowed to join.

3) Pension Slabs

In case of NPS, there is no such standard pension slab. However, in APY the pension slabs are fixed like Rs 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month.

4) Types of Accounts

In case of NPS, you have two types of accounts. One is Tier I and Tier II. Whereas, in case of APY there is no such differentiation.

5) Minimum and Maximum Contributions

In case of NPS

For Tier I

You must contribute a minimum of Rs. 1,000 per annum. The minimum of Rs. 500 per contribution is required. In addition, you must contribute minimum 4 contributions per year. There is no maximum limit.

For Tier II

You have to contribute the minimum of Rs. 250 contribution at a time of account opening. Subsequently, you have to contribute a minimum of Rs. 250 per subsequent contributions. There is no maximum limit.

Note-As per recent PFRDA circular dated 8th August, 2016, the minimum contribution in Tier 1 Account is now reduced to Rs.1,000 a year. There will be no minimum investment limit for Tier 2 account (Earlier, it was Rs.250). Also you no need to maintain the minimum balance in Tier 2 account (Earlier, it was Rs.2,ooo).

In case of APY

In case of APY, the minimum and range depends on the age. For example, the minimum monthly contribution for 18 years of age person is Rs.42 to get Rs.1,000 monthly pension. At the same time, the minimum monthly contribution for 40 years age person is Rs.291.

There is no upper limit of investment set for both NPS Tier I and Tier II Account. However, in case of APY, the maximum limit for 18 years of age is 210 to get a monthly pension of Rs.5, 000. At the same time, the maximum monthly contribution for 40 years of age person is Rs.1, 454.

6) Premature Withdrawal


Tier I

  • You can withdraw at age 60, 40% of accumulated amount be used to buy annuities from an IRDA approved insurance company, A phased withdrawal is also allowed, but the lump sum balance should be withdrawn before the age of 70 years.
  • To exit before 60 years age, only 20% of the lump sum to be cash withdrawal, 80% to be used to buy annuities from an IRDA approved insurance company.
  • On death before the age of 60, the nominee receives a lump sum.

Tier II

There is no restriction and you can withdraw it at any point of time.


  • Once you attain the age of 60 years, then you have no option but to utilize 100% of the accumulated amount for a pension. No partial withdrawal is permitted.
  • You cannot withdraw in APY. Withdrawal is available only in case death or terminal diseases.

7) Choice of investment

In case of NPS, you have primarily two choices. One is Auto Choice where the asset allocation among equity, Corporate Bonds, and Government Bonds are adjusted automatically based on age of a subscriber. Another is Active Choice, where you select your asset allocation (subject to the maximum of 50% in equity). In addition, you have a freedom to choose fund managers to manage your money.

In case of APY, there are no such options.

8) Tax Benefit

While Investing

The tax benefit in NPS will be available only in case of Tier I account, but not for Tier II account.

Employer contribution to the NPS on behalf of an employee will get a deduction from his income (i.e. employer’s income) an amount equivalent to the amount contributed or 10% of BASIC SALARY + DA of the employee, whichever is less. (Section 36 (1) (iv a) of the Income Tax Act 1961).

Employer’s contribution to NPS on behalf of the employee is treated as perquisite in the hands of the employees. However, it is deductible u/s 80CCD (2) of the IT Act, 1961 to the extent of 10% of basic salary. This deduction is over and above the limit of Rs.1.5 lac u/s 80 CCD (1). This will lessen the tax burden of the employee to the extent of amount deductible u/s80CCD (2) of the IT Act, 1961.

Contribution by an individual employee is eligible for a deduction from Income under Section 80CCD (1) of the IT Act 1961 up to Rs 1.5 Lakhs. However, investments under Section 80C Section 80CCC and 80CCD(1) should not exceed Rs.1.5 lakhs per assessment year to claim the deduction.

An additional tax benefit of Rs.50,000/- under section 80CCD (1B) per year (applicable from FY 2015-16/AY 2016-17) for NPS investments.

Contributions made by an individual under the Atal Pension Yojana are eligible for the deductions under section 80CCD of the Income Tax Act, 1961. Maximum deduction allowed under section 80CCD (1) of the Income Tax Act, 1961 is 10% of gross total income subject to maximum deduction of Rs. 1,50,000 p.a. as specified under section 80CCE of the Income Tax Act. However, investments under Section 80C Section 80CCC and 80CCD(1) should not exceed Rs.1.5 lakhs per assessment year to claim the deduction

An additional contribution of Rs. 50,000 p.a. is eligible for an additional deduction of Rs. 50,000 p.a. under section 80CCD(1B) of the Income Tax Act, 1961.

While receiving pension

Both NPS and APY pension is treated as taxable income under the head of a salary.

9) Where to open an Account?

In case of NPS, you have to open the account by visiting the nearest Point of Presence (POP) branch to open the account. This account could also be opened online through CAMS online, or providers such as ICICI Direct and FundsIndia.

In case of APY, you have to approach the bank where your savings bank account is held.

10) Nomination facility-

In case of NPS, the nomination is not mandatory. However, you can nominate a maximum of 3 members. The total sum sharing of all these nominees must be equal to 100%.

In case of APY, the nomination is mandatory. You have to provide nominee details while opening the account.

11) How much return you can expect?

In case of NPS, returns are not guaranteed. It depends on the performance of the fund. Whereas, in case of APY, returns not disclosed. But set the fixed monthly pension.

12) Government contribution

In case of NPS, the Central Government and State Government employee’s contribution are fixed at 10% of the Basic and Dearness Allowance (DA) per month which is matched by an employer contribution of the same amount. For the rest of the people, there is no Government contribution.

In APY, the Government will also contribute 50% of the total contribution or Rs. 1,000/- per annum, whichever is lower, to the eligible APY account holders who join the scheme during the period 1st June, 2015 to 31st December, 2015. The Government contribution will be for 5 years from FY 2015-16 to 2019-20. This contribution to APY will not be applicable to those members who are-

  • Income Tax Payers.
  • Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
  • The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
  • Assam Tea PlantationProvident Fund and Miscellaneous Provision, 1955.
  • Seamens’ Provident Fund Act, 1966.
  • Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
  • Any other statutory social security scheme.

13) Who manages?

NPS is managed by PFRDA. The APY scheme is administered by the PFRDA/Government.

14) Permanent Account Number

In case of NPS, you will get the unique Permanent Retirement Number (PRAN). By quoting this PRAN, you can operate NPS sitting across India. There is no such facility in APY.

15) How many accounts, one can open?

For both NPS and APY an individual can open only ONE account.

284 thoughts on “Difference between New Pension Scheme (NPS) and Atal Pension Yojana (APY)”

  1. Kishore Kumar Kajjayam

    Hi sir, I have opted for APY in 2017 by using Canara bank. I got PRAN Number at the time of applying for APY. At that time I was jobless. But now I am State Govt Employee and I have my salary account in SBI.Recently all my colleagues are applying for PRAN for NPS. Please clarify following doubts sir!
    1).To apply for NPS Shall I use the previous PRAN number which I got at the time of APY or I have get new PRAN ?
    2). Also my PRAN was linked to my Canara bank at the time of APY. But now my salary account was SBI. Shall I use 2 different bank accounts for PRAN. (Canara for APY & SBI for NPS) ?
    3).Am I eligible to continue APY at present as a government employee?
    4).I am getting my PRAN Number in APY App. How can I get physical PRAN Card, I PIN, T Pin etc

    1. Dear Kishore,
      As PRAN is unique for individuals, I insist you to use the existing PRAN for your employment need. You can change the bank account and it is not a big issue. If you are government employee or tax payer, then you are not allowed to continue APY. Better to close it.


    1) Can 1 person open both the accounts?
    2) If you can open it, then there will be 1 in both Aadhar card and PAN card, then there will be no technical problem in the account, because both are operated by the same organization?
    3) Is there any government rule that 1 person cannot open both the accounts, can choose only one of the two?

  3. Hi Basu
    I am about to superannuate in few months from a PSU. I will now be requiring a regular income after retirement. Opened my Tier I account recently. It is expected that the pension fund accumulated will be transferred to NPS for pension after retirement.

    I have few querries /apprehension:

    1. I have no corpus of my own in NPS. Shall I extend the total corpus of pension available till 70 years of age. Or can I defer my pension till 63/65 years of age. Can I withdraw some amount from this on regular basis( once/twice a year) as long as i stay invested.

    2. How much it is advisable to invest in Tier II for regular growth /income.

    3. Shall I choose active /auto choice.

  4. Hi Basunivesh team,
    Need urgent help asap.
    I have below doubts please clarify me. I have updated my email id, please send me an email too.
    1. I have a PRAN for APY. I want to open NPS A/c. Do I need to use same PRAN to open NPS A/c? If not, I am good.
    2. I am tax payer, but at the time of opening APY A/c I was a student. Will I still get the benefits of APY after superannuation(eg. 4000 0r 5000 rupees of monthly pension)? I am still paying APY every month.
    3. I want to choose Tier-1 NPS with Active choice option. Also want to distribute 50% on Govt.(G) and 50% on Corp (C) without any % in Equity (E).
    Is this scenario applicable? If yes, what are its benefits and drawbacks?

    Thanks in Advance. Happy Independence day!

  5. Good evening sir.I am S Poopathi also working as a LIC agent. I have PRAN Number. But don’t T PIN, I PIN and also PRAN. card not obtain till date.Because very difficult to view statement and login. So how can the way obtain PRAN card.Thank you sir.

  6. Niraj Kumar Sahu

    I open APY in 2017 and NPS in 2018. So the PRAN number for both have different in my case.
    So, can you suggest me PRAN number need to be same or may be different.In future can be it create a problem for me.
    So, please suggest me

  7. an individual can open

    1 PRAN for APY and 1 PRAN for NPS

    i.e 1st PRAN for APY and 2nd PRAN for NPS

    Total 2 PRAN

  8. Sir, I have a pran no.for apy. Recently I have got the job in Bank of India, so I have to open my nps account. So can I open my nps with apy pran no? If yes what is the procedure. Plz guide me. Thank you.

  9. Hi Basavaraj,

    You have mentioned that a person can have both NPS and APY. At the same time you have told that “As per law, one must have only one NPS and one PRAN”. If you try to have both NPS and APY, then you will end up in having 2 PRANs. Or is it possible to have both NPS and APY under single PRAN?. Can you please clarify this?.

      1. Similar to Arun, I also ended up with one PRAN for NPS and one PRAN for APY. There doesn’t seem to be any way to prevent a PRAN number from getting generated for APY when you apply online. It doesn’t ask for your existing PRAN number at all..

          1. Will this cause an issue in the future? I have the same problem. Two different PRAN numbers for NPS and APY.

            Is there a way to club those two under one single PRAN… If any procedure, please let me know.

  10. Rohini Bharati

    sir, i m having PRAN for NPS Lite scheme my agent told it is closed so go to the bank & deposit your contribution there but i visit twice to my bank , they dont have any idea about it so from last year i didnt pay my contribution. now how can i check my status . I know NPS lite is moved to APY but how can i check & contribute in it now. pls help me

  11. Sir,

    Can me and my husband have separate APY accounts?

    Currently my husband has one. Can i also open one for me?


  12. which is preferable for middle /common man (service sector)NPS – TIER I OR TIER II OR APY (Atal Pension Yojana).

    Kindly revert me asap.Thanks.

  13. Hi Basavaraj

    I have opened an individual NPS account recently , Now my company is also providing an NPS account , Should I shift from individual NPS account to the company one, Are there any benefits avialable to justify doing that ? Thanks

  14. I submitted NPS application through bank.
    And opened APY online(simultaneously, when I came to know about enps).

    Now I have pran for apy and a pran for nps.

    Is that normal? If not, what should I do!

  15. Soumya Ranjan Dehury

    can i get the pension amount after 50 years if my investment is till 60 years in nps tire 1.
    Is it completely tax free.
    to get 20,000 as pension how much i should invest in NPS.

  16. Sir , can we open a ayp plan instead of an nps plan . I already have an nps plan and I’m not from the unorganised sector. But if I’m getting a different job can i apply for ayp instead of an nps?

  17. good news for individuals willing to join the Atal Pension Yojana (APY). Presently they don’t have to visit their bank or any mail station to subscribe to it. “APY is accessible on eNPS stage and any qualified Indian native can enlist through APY@http://www.atalpensionyojana.co.in/
    I am also an APM account holder and found NPS scheme is way better than other. This is the best way to check to check your Atal pension yojana status .

  18. I am an existing APY subscriber and now I got employment in a PSU who has asked to open a NPS.Should I apply using the new a/c opening form i.eCSRF1 form or I need to transfer the APY to NPS as I hold an PRAN against APY.Are the two PRAN different and can be independently subscribe to.

      1. Hi Basav,

        1. I have got my APY account set up from ICICI Online on August 2016. I have got my PRAN number.
        2. I have not received PRAN card yet. Email from NSDL says that i need to contact branch. I have contacted branch but they have no idea on what is APY. How can i get my own PRAN card????
        Note : I can get e-PRAN in APY link. But it shows card name as ATAL PENSION YOJANA. I hope PRAN card has photo embedded.
        3. I would like to open NPS through AXIS bank online as ICICI online is not working. When I enrolled my PRAN number in AXiS bank, it shows the PRAN is related to NPS-lite and I need to contact aggregators??? What should I do at this point of time??
        4. Any suggestions you can give?

          1. Mr.Basavaraj,
            I have an EPFO account. I opened an NPS for Voluntary Additional Contributions Just a few days ago, I opened an APY account. I have separate PRANs for Voluntary NPS and APY. As you know, the contributions to APY are by direct debit by bank,, wheras contributions to Voluntary NPS are by deposit by the account holder. How can a single PRAN will help in this case, I am not clear. I think the PRANs can be separate. NSDL says that the APY and NPS are different schemes and therefore I can have them both.

  19. Sir I m already working in central govt nd I hv an already NPS . But I want to open an atal pension yojna account also . Can I open both NPS and APY at same time . Pls suggest me

  20. Hi Basavaraj,

    Request you to please address my below doubt.

    I am an APY subscriber for past 1 year. Currently i am working in a private company & now i shall be switching to a govt. job where they shall open a pension account. Please let me know about how would the procedure go like? Shall i need to cancel APY in order to go along with my govt. job pension benefits. Can’t i give them my current PRAN no to use?

    Rahul Kumar


    my wife is SUBSCRIBING TO APY scheme thorugh SBI s.b. Accounts, She wants to shift the same APY subscription to Canara Bank. Is it is possible?

  22. Hi Sir,
    Can I avail PRAN card for the pension a/c under APY. Pls suggest. Is it imp in future to avail pension. If I can avail PRAN , which tier to select when applying for it online.

  23. Dear Sir,

    lease clear, that a private sector employee can open NPS account at individual level to avail additional benefit Rs.50000/- u/s 80 ccd who is already a member of Employee Provident Fund.

    I am working as Sr. Manager in a private limited company and also a member of EPF, 12% my contribution and 12% employer contributes. Now I have availed 150000/- u/s 80c and Rs. 25000/- u/s 80D, can I eligible to invest individually in NPS to get additional benefit u/s 80ccd and how much should I invest?

    please advice


    Kuljeet Singh

  24. dushyant singh

    Dear sir,
    In 2014 I opened a nps lite account which is now converted in apy. Now I am Rajasthan state government employee. I already have a PRAN comes with apy. Can I transfer my old pran to government sector or I need to apply for new one

  25. Dear Sir,

    I think Atal Pension Yojna is also covered under Tax Benefits of NPS as per Notification No. SO 529(E) dated February 19, 2016.

    (Department of Revenue)
    New Delhi, the 19th February, 2016

    S. O. 529(E).— In exercise of the powers conferred by sub-section (1) of section 80CCD of
    the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the ‘Atal Pension
    Yojana (APY)’ as published in the Gazette of India, Extraordinary, Part I, Section 1, vide number
    F. No. 16/1/2015-PR dated the 16th October, 2015 as a pension scheme for the purposes of the said

    2. This notification shall come into force from the date of its publication in the Official

    [Notification No. 7 /2016, F.No.173/394/2015-ITA-I]

  26. Hi, I have opened a eNPS account and received a PRAN. Later i opened APY account. I have received another PRAN. Can i have these two accounts combined on one PRAN? How to do the same? Plz suggest.

  27. Hi sir, I have swavavlamban account and my age 21 years and I filled form of wish to opt out in apy and give it to my bank aggregateor so now I am continue in nps lite! And now I contribute money in nps lite?

  28. Praveen Gaikawad

    Hello Sir,

    I had opened a APY account in SBI in January 2016 in SBI .

    1.is it possible to open a new NPS account to take the additional benefit of Rs.50000/-

    2.curently will the NPS allow to invest and hold 2 different PRAN number for APY and NPS?

    3.Kindly advise on the tax savings MF



  29. Hello, I am opened mom and dad NPS Lite account and paid two instalments through PAY SLEEP provided by UTI through agent now that account is closed where i deposited ,so how can i pay for the same. someone says me NPS is closed and transfer NPS account to APY now issue is APY scheme age is max 40 and my mom dad age is above 40 so what can i do ?

    1) difference between NPS Lite and NPS Main
    2) can i convert Nps Lite to Nps Main or APY and how (age is above 40)
    3) where to submit premature exit form for NPS ? , i don’t have acknowledgement no for premature form
    4) is NPS lite and APY are different ? and both are working separetly ?
    5) i want to open pension scheme which is best NPS or APY bellow 40 age

      1. yes i feel APY is better product for retirement.APY scheme age is max 40 and my mom dad age is above 40 so what can i do ?
        someone says me above age 40 cant continue to APY and withdraw all amount .I got required document for premature withdraw
        1) Where to submit premature exit form for NPS ? , i don’t have acknowledgement number for premature form

        2) What is NPS MAIN ?

        3) how to pay contribution for NPS Lite account

  30. Atal Pension Yojana is by far the best scheme started by this Government as you are going to earn a fixed amount of income after retirement while the NPS contributions was not fixed because they are market linked.

  31. Dear Sir
    I am aged 55 and I have opened a NPS Tier-1 account this year itself, hoping this will give me tax benefit under 80 CCD(1).
    Now if I manage to get my company (Pvt. Ltd) to invest 10% of my basic pay into my NPS account, will that amount also be tax-free.
    Also want to know, how can the company contribute on my behalf, by directly giving cheque to NPS pop or will it need to open an corporate account with NPS and then contribute on my behalf.

    These are 2 of my querries – please advice.

    Anand Burli

  32. Dear Basu,

    I have a doubt, I have both NPS Tier-I & Tier-II account for which I am having PRAN. Recently, I registered in APY scheme, in which a new PRAN was generated online in my SBI a/c.

    So, is there a problem here? Do I have to contact SBI or NPS CRA regarding this?

  33. Dear Basavaraj,

    I am working for MNC and would like to open the NPS tier-1 account.

    Your article says “Employer contribution towards the NPS account”.

    Does this feature available for employees working in Central or State government OR employees who work in big corporates like Reliance, TATA and Infosys?

    Please clarify.


    1. Ganesh-It may be available with private companies (big or small), but it purely depends on whether they provide such facility to their employees or not. There is no hard rule that they must provide this facility to their employees.

  34. Dear Sir;
    I am employee of private sector , opening account in nps tier -1 , not tire 2 . if necessary to open tier2?.
    APY can i open?

  35. I have opened APY account in name of housewife and i am investing 900 per month on behalf of housewife. Housewife is not earning any income.
    Is investment be claimed by me (Her Husband) for exemption under section 80CCD ?

  36. Hi Basavaraj,

    I am 28 years old. My current monthly investments are-
    Rs.1500 towards PF
    Rs.2000 towards PPF
    Rs.6000 towards ELSS (solely for retirement corpus)
    Rs.6000 towards equity mutual funds (for different goals in life)
    Rs.485 towards Atal Pension Yojana (retirement pension)

    I have invested for APY solely for govt guaranteed pension. I have ELSS funds for retirement corpus.
    Should I invest Rs.500 per month more towards NPS? Currently I am in 10% bracket.

      1. No i dont think they are the best ones…
        I have ELSS corpus assigned for my retirement.
        I think Rs.6000 per month for 34 years would suffice for retirement corpus. That aside i have PF and PPF contributions too.
        I was just considering APY as its govt backed and guaranteed. Also Rs.485 per month is not a big deal right now.
        What do you suggest – continue APY? I had paid only one installment.

  37. I have below queries:-
    1. as per the new norms minimum contribution reduced to 1000/- per year for nps. is it true for tier-1 or tier-2 or for both
    2. my nps account is freeze. how to unfreeze the same
    3. my sbi account is regularly deducting atal pension yojana amount. do we have a portal where we can see the total amount deposited in the atal pension yojana .

    Thanks and regards
    Mohit Jain

    1. Mohit-1) The minimum contribution in Tier 1 Account is now reduced to Rs.1,000 a year. There will be no minimum investment limit for Tier 2 account (Earlier, it was Rs.250). Also you no need to maintain the minimum balance in Tier 2 account (Earlier, it was Rs.2,000).
      2) Contact PFRDA or POS and pay the minimum yearly contribution and penalty and activate it.
      3) Contact bank.

      1. appreciate your quick response. could you please answer below queries as well…

        1. As i am a salaried employee, so i have a EPF account as well where 1250 rupees deposited in my pension fund. I have nps account as well. I have registered for atal pension yojana as well.

        So my query is will i get the three pension each from different EPS,NPS,APY.

  38. sanjay kr dwivedi

    dear sir
    sir mai pvt job karta hu .kya mai nps ac open kar sakta hu maxmium kitna rs ka monthly de sakta hu.kya mujhe tier i and teir ii dono kholna chahiye.pls help me.


    Basavrajji, Pls. help me that I have NPS – LITE (Swavlamban) and APY both since 1.5 years, now i had called to CRA for NPS lite to NPS Tier-I, CRA executive told me that you have to open new NPS Tier-I we will transfer your money to NPS Lite to NPS Tier-I, hence i had opened NEW NPS Tier-I, my question is can i keep both NPS LITE and NPS Tier-I ?

      1. Hello sir, I have same question.
        I have NPS lite account.. I want to open my new NPS tire 1 account through e-NPS. Plz advise can it be possible. Also advise how I can transfer amount from NPS lite to NPS main.

        Plz advise.

  40. Dear Sir,
    I had opened NPS for myself and chosen KOTAK as fund manager. I also want to open NPS account for my wife. Kindly let me know whether both Husband and Wife can open NPS account and also help me in choosing best Fund Manager also. Will I go for KOTAK or should choose any other.

      1. Thanks a lot sir for your reply. Also I am having one more question though it is too early to ask this but can you share some of the best plans to choose from for selecting Annuity Plan after completion of 60 years to get handsome pension amount.

  41. Dear Basavaraj
    I have opened APY a/c through bank.
    1.Can I register it online to track & monitor my contribution.
    2. I surprised to receive the Govt’s contribution i.e Rs 1000/ into my savings a/c instead of APY a/c. I thought the Govt contribution should be into the APY a/c & not into the savings a/c

  42. Dear Basavaraj
    Thanks a ton for en lighting us by such detailed information.I have an query.What will the tax implication for withdrawal from Tier-II account? Like if I earn profit, do I need to club it with my income or Kind of MF taxation like benefit available?

  43. sir please suggest me as i am a central govt employee having one pran, now i have joined other central job and there i did not disclose about my old pran number, now as i have obtained other pran number, what should i do?
    Will my old account automatically become dormant?

      1. how can my old account be closed sir and what about money which was deposited in old account for one year? Thanks

    1. I also received two PRAN numbers One for NPS and second for APY.

      I send an email from my NPS login to CRA and this is the reply I received “Dear Subscriber, we wish to inform you that APY & NPS regular are two different schemes. Further, is no provision for merging this two PRAN’s. Hence, you are requested to hold two PRAN’s separately.We hope this clarifies the matter and thank you for being our valuable subscriber.”

      So I think it is okay to have a second PRAN for APY.

      In case anybody else succeeds to merge plz inform .

        1. Friends,
          pl. enough is enough now, I have got written email query reply from the PFRDA/NSDL
          see below the reply – from –
          Dear sir,

          Please find the NSDL-CRA reply marked in yellow colour below.


          Mohinder Singh | Manager | NSDL e-Governance Infrastructure Limited | (CIN U72900MH1995PLC095642)

          Direct: + 91 22 2499 4391 | Cell: +91 9833070921 | Fax: +91 22 2495 2594 | Email: [email protected] | Website: http://www.egov-nsdl.co.in


          NSDL REPLY –
          Yes you can open a APY account. If you are having a NPS Swavalamban account, the migration facility is available, the same PRAN can be continued to APY. However, if you are having a NPS PRAN other than Swavalamban. You need to apply by submitting a fresh APY application.

          thanx, Hemant Pandya

          1. Hemant-See the lines “if you are having a NPS PRAN other than Swavalamban. You need to apply by submitting a fresh APY application”, they are specific in saying that one can apply for APY but not for one more PRAN.

            1. Please find my latest communication on PRAN number for APY and NPS.
              Dear Sir,

              This is with reference to trail mail. In this regard, please note that NPS & APY both are separate schemes and hence a subscriber can enroll under both the schemes and can have 2PRANs i.e one in NPS and another in APY.

              In NPS, PRAN card has been issued to the subscriber. However, such facility is not available in case of APY. The only acknowledgement for enrolment in APY is the acknowledgement slip given to the APY subscriber while registering the subscriber under APY. The said acknowledgement slip is part of APY registration form.


              Mohinder Singh | Manager | NSDL e-Governance Infrastructure Limited | (CIN U72900MH1995PLC095642)

              Direct: + 91 22 2499 4391 | Cell: +91 9833070921 | Fax: +91 22 2495 2594 | Email: [email protected] | Website: http://www.egov-nsdl.co.in

        2. Dushyant Pandit

          Dear Mr. Basavraj, keep in mind that since 1 year it is not possible to hold 2 PRAN’s but before 1 year PFRDA allows you to hold 2 PRAN’s as that time there was no APY, subscriber know only NPS than after Govt. has introduced APY and allow it.

    1. KYC is Know your Customer. It is the documents you give to a bank or any financial institution to identify yourself. I don’t know how to open KYC 😀 (rolf)

  44. Dear Sir,

    I Have a NPS Tier 1 account.

    I willing to close the NPS Tier 1 account. Is it possible to switch over the amount from NPS to APY by closing of the NPS.

    If possible means please advice me!!!!

      1. Mr. Basu Sir, I think he can withdraw from NPS, take back the available fund – say 20 % from tier I and 100 % from tier II , and open an APY a/c and start investing provided he is within 40 age.Additioanally he can also open one APY a/c keeping the NPS a/c also intact and running. A person can open one NPS and one APY a/c, no issue if 2 PRAN numbers, see the pfrda website for any doubt.- Hemant-I am ex senior banker and trainer too.

      1. Hello Sir..If I Open for APY for wife (Housewife) can i claim it for Tax exemption along with my APY claim.Kindly suggest.


      1. Dear Basavaraj,
        Are you sure that we should have 2 PRAN – one each for NPS & APY. Because the same issued happend to me also. Online SBI automatically allotted me one more PRAN # (For APY). I called up the Toll FFree # 18001801111 and they said we can have 2 PRAN for NPS & APY. And only NPS- lite needs to be merged with APY. Can you please clarify again.

  45. Dear Sir

    I had open NPS lite Swavalamban account Bank of Baroda since 2013 & other account APY SBI since 2015 but both generated pran number is different. so what will be do work both account in future or not.

      1. Dear sir

        but prn no is different so how to work NPS & APY

        how to merge nps to apy and how to getting the new prn no.

          1. Basu Sir, kindly provide me the legal provision – the particular Act with section which provides that a person cannot have 2 PRANs ?Because I have not been able to find such law so far. For PAN, yes the Income Tax Act provides having one PAN only.

            Sir, kindly provide law provision at the earliest since this issue even the PFRDA are not clarifying as – whether I can open one APY with separate PRAN even though having NPS a/c with a PRAN ?

  46. I am a primary school teacher of state govt under taken,and i have gpf. I also join in APY @5000/- slab.
    MY QUESTION IS THAT IF GOVT DONT CONTRIBUTE IN MY APY. 1)what will i get after completion my age 60, will i get ?pension or the sum i accumulate till the age 60 with interest ?
    2)If i will get my teaching service pension in future,will APY also give me my benefit as pension money 5000 per month ?

  47. Hi Sir,
    I have NSDL TIER I Pension from 2011 and i am paying ATAL Pension also from last year can i have both pension funds

    some r saying that one person cant take more than one pension scheme. Is one should have only ONE PRAN

    if so pls suggest which is the best one to continue

  48. i want to join NPS before 31st March 2016 for tax benifit. The system was not working and i could not make Aadhar based KYC and opted for PAN based KYC.I later come to know that witout KYC from bank you cant contribute further. I do have aadhar. Should i genrate new PRAN and later merge both or should wait for this PRAN activation. Pls help

          1. Actually i want to invest before 31st march so as to take tax advantage. If KYC not done before that i will not be able to make contribution to my Tier-1 account

  49. Hi sir,

    I am Harendra , 24 Unmarried male.Non Tax payer . I am holding NPS ,i got my PRAN Card as well..
    Just help me out with bellow questions

    1-Which is good NPS or APY?
    2- i am contributing 1000 rs per Annum,how much govt contribution will i get?
    3-Is it good to stay with NPS or Switch to APY from NPS ??
    4-how can i check mine total amount under NPS(own contribution + Govt Contribution)

    1. Harendra-1) According to me, both are not good.
      2) There is no Govt contribution for NPS. However, if you are employed and employer offers NPS, then he may contribute to it.
      3) I already replied to you.
      4) You can check using PFRDA portal.

      1. Thanks sir for your kind knowledge.

        Let me correct myself – i am under NPS lite.

        yesterday i went to UTI office they inform me that Govt will contribute 1000/- rs till 2017.

        Also let me know what investment for retirement i should go for (Except APY & NPS) as you said both are not good

          1. last question sir

            1- Is both are the Approved by the govt??I means to say is there is any chances that after investing , govt close both or any one before 60 years?

            2-If its not a fake than think investing minimum 1000/- in a year is not Bad.
            Kindly put your point in this regards.

  50. Hello Basu Sir,
    I was having an individual account in UTI ITSL, who surrendered it to an SBI branch….
    Now my account has been frozen for some time due to non- contribution and when I approached that SBI branch for unfreezing my account, the employees of that branch turned out to be completely unaware about NPS and had no clue about what to do….

    Now I am having trouble in getting my account unfrozen due to this….I have sent a mail to CRA but no reply has been received till date
    please advise asap please…

  51. Hello Basavaraj,

    Nice presentation of facts.
    I have few queries to ask you :

    1) In APY, the Government will also contribute 50% of the total contribution or Rs. 1,000/- per annum, whichever is lower, to the eligible APY account holders who join the scheme during the period 1st June, 2015 to 31st December, 2015. The Government contribution will be for 5 years from FY 2015-16 to 2019-20.
    I have opened APY account on my wife’s name Aug 2015 in ICICI Bank, APY contribution 630/- per month, however Government contribution not recieved. Can you advise the action required from my side.

    2) In one of your response, you have mentioned that Birla Sunlife Frontline Equity is good fund.
    Can you please suggest some more.
    I have an appetite for High Risk, as i understand it can provide me high returns.

    Thanks for your help.

    Best Regards,

  52. Hi Basavaraj, thanks for spreading the knowledge to common people. I have a doubt about NPS, as you mentioned the amount deposited in NPS will be managed by a fund manager. Is this the same as a mutual fund? I mean the money will go into share market? If that is the case how it would be different from investing in a mutual fund? I may be a stupid to ask this question. But I could not able to understand how it works.

    1. Srinivas-Fund managers may be different. But equity investment as a pool means works like Mutual Funds. There may be some differences like charges, liquidity and investment mandate. However, mutual funds have an edge over liquidity and taxation (equity). But sadly TAX SAVING investors never look at it.

  53. Hi basu ,
    This is manju,i saw one case in previous comment posted by one party ,and replies you. Now my question is ,one party can leave the bank and join another bank, in this situations shall party having two PRAN number’s now my question is, can party open new Nps a/c before closing old one .please give information regarding this

  54. Hi sir this is goutam iam working one of the nationalised bank and iam having NPS a/c now iam join another bank can I open another Nps a/c and I don’t want to continue my old one, i want to open new one ,and close my old a/c

  55. Dr. Vimal Saraswat

    I have a NPS account and also APY account. Can I keep both the PRAN number or I have to merge both of them.
    If merging necessary, then what is the procedure of merging them, because in APY bank can not give us PRAN kit, so how can I invest in NPS through APY, PRAN number

  56. I am a state govt. employee and hold an EPF account. Can i open NPS?? And can i change NPS contribution in future if i want to change??

  57. Vimarsh Bhardwaj

    Hello Sir,

    I got PRAN no. for APS, I already applied for NPS. Can I avail 2 PRAN for 2 products or I have to keep 1 PRAN no only and can I invest in both the plan simultaneously.

  58. Hi have opened NPS account since last 2 years, now I would even like to open APY account.
    Since PRAN for both account is same, Bank employee informed me that if I contribute to APY my NPS will be de-activated automatically. Is it true? Can I contribute to both scheme under same PRAN.


  59. Hi, I have contributed towards APY since July 2015, I have been allotted PRAN No.,
    Where I can check my APY investment statement ?


  60. Hi Basvaraj sir,
    1.I am currently I am not Gov. Employee and now I enroll for APY then in future if I got gov job then government employer will open NPS account so will I get employer contribution which is 10 percent of basic salary?

    2. Will government contribution in APY will stop due to NPS if I got job?

    3 After 60 year APY will give 5000 monthly pension..so upto what age this monthly pension will get after 60 year?

    4. Sir you said APY will not gives good return in future..why sir..can you explain?

    5.Is NPS good for government employee as employer will contribute in our NPS account?

    6. And for Non government employees who want to open NPS so for that person NPS is good or not?

    Sir please answer all above query…thanks sir in advance.

    1. Atul-1) YES. 2) YES (remember Govt. contribution in APY is not for life long, but only in initial years). 3) Please read above post fully to understand on the same. 4) Returns from this product is around 7%. Do you feel a great return to create retirement corpus? Your long term goals returns must always be in a products which beats inflation. 5) Not good, but no option. 6) There is no such return differentiation as Govt investor and non Govt investor.

    2. For question no.5, I myself is a NPS beneficiary joined in 2004. I have calculated the difference between NPS and old pension system. I have written letters and representations to 7th CPC. because of many people representation only a special committee was framed to look into the issues of NPS. Now the improvements done to NPS are that Gratuity is given, Death cases will be given family pension (in old pension scheme), Govt contribution increased to 14 percent, Our contribution withdrawal options possible etc. All these changes are made only because, NPS is not good compared to Old pension system. Some people bluff that NPS people will get crores. If that is so why was the govt contribution increased to 14% from 10%. This itself is a proof. Actually our proposal was GMC should be atleast 20% to somewhat 80% match with Old pension system. Still those who claim that NPS is good, my question to them is, why dont you implement to ARMY NAVY AIRFORCE because it is better than Old pension scheme. If it is done so, no one will join the Armed forces. This is also another proof. I made all comparisons. NPS is like we get maximum 10 years pension (upto 70 years) equivalent to old pension. After 10 years u get nothing while old pension people will continue to get it (just to make one understand the difference). Earlier it was 7 years pension (GMC 10%) . Now just because GMC is 14% it is stretched to 10 years. And approx NPS is equal to 60 to 70% of OPS. In ops if u get 100rs in nps u get 60 to 70rs only.

  61. Hi Basavaraj ,

    1) Is it advisable to invest 5000 per month in sukanya sumrudhi for baby girls, Rate of interest is 9.2% as of now.Rate of interest will be declared by government every year? It seems good for me and i am looking for long term investment.

    Till 14 years we have to pay and on 21st year we will get 3 times what we invested.

    2) I want to invest 1000 per month in Birla sun life mutual fund, Could you please tell me which fund is better?
    Note: I am paying 2000 per month in HDFC mid cap opportunity Direct plan-growth.

    3) I want to invest 1000 per month as Recurring deposit in post office for 5 years. Is it Good? or Can i put this amount in Mutual funds?

    1. Karthik-1) I myself not invested in this plan. Because it is more of a political gimmick than nothing. You see the status or interest rate of this scheme once this Govt’s tenure over. Stay away from such politically motivated investments.
      2) Birla Sunlife Frontline Equity is good fund. Go ahead.
      3) Instead of RDs, use short term debt funds and Arbitrage Funds. They are more tax effecient.

  62. sir am from andhra pradesh,i want to open nps account in ONLINE.but they are not considering state bank of india or state bank of hyderabad in bank column.so please add these two(2) banks also in registration form.then only i joined E-NPS,because my savings are in these banks only.please solve this problem as early as possible for activating my account

  63. Hi Basu,

    I joined APY on Sep-2015. Since then I am not receiving any email or hard copy communication regarding my APY account. Every month I use to receive an SMS for the payment receipt. I wonder, if I change my number or address, how I would able to trace my APY account and, and at the age of 60, how I will claim for pension. Also, how can I submit the proof of investment to IT department ?

    Please advice, if any info you have regarding this.


  64. Hi Basavaraj ,

    How are you? Could you please clarify below points

    1) Could you please tell me where can i invest money to get high returns with less risk like Mutual funds or Recurring deposits or National saving certificate or shares or PPF?
    I already paying 2000 monthly in HDFC mid cap-direct growth.(Mutual fund)

    2) Paying some amount(2000/month) to sukanya samrudhi, Can i invest some amount in PPF?

    3) Can i buy 2000 worth of National saving certificate(XI-10years) from post office every month for 10 years. So that i will get money(approx.4500) after 10 years evey month, Is it advisable?

    4) My age is 30 years.Married, Please advise me to invest money to reach short/long period goals

    1. Karthik-1) Never run behind products. First understand your financial goals. Based on the time frame and your risk appetite chose the products. Random investing with the meanings like HIGH RETURNS with LESS RISK will not create you wealthy.
      2) Again same answer, if you have a goal of 15 years of so, then park your debt part into PPF.
      3) What will be the value of that NSC maturity after 10 years? Try to understand the concept of inflation and real return.
      4) I already answered it in the first point.

  65. I’ve submitted application form to join APY in sep-15. But in Oct’15 i checked with my bank and they have informed me dat due to some technical error this a/c can’t be opened. Then i decided to join NPS. Last month thru bajaj capital i applied for d same and on 27th i receive my pran no. And on 28th suddenly apy contribution amount has been deducted for d month of oct. Again today nov month contribution has been deducted from my acc.
    Now my questions
    1. Can i continue both d a/c??
    2. If yes then 2 diff pran no will create problem in future or not?
    3. Is there any possible way to use 1 pran no for both d a/c and how ?
    4. If both me and my husband join apy then after 60 years both of us will get the pension or not? and in case of death of any of us the survivor will get both d pensions or not plus our son will get the corpus amount for both d a/c or not?

    Please guide…

    1. Barnali-1) Yes, you can continue. But think seriously whether both are BEST suite your retirement corpus creation.
      2) Yes, inform the PFRDA for the same.
      2) They have to alot only ONE PRAN only. I think they created two. Inform the same to PFRDA.
      4) Yes, both will get APY. Yes, survivor will get benefits.

      1. No, actually I wanted to operate the NPS A/c only but I read that there in no option to pre close the APY A/c hence I’ve to continue both the A/c.

        Please let me know if there is any scope to close the APY A/c. If not then I’ll inform my APY PRAN to PFRDA to merge it with NPS PRAN. Do you have any mail ID of PFRDA?

        And last but not the least thanks a lot for your guidance.

  66. Hi,
    I am already having APY Account from Axis Bank for me & Wife & I got the PRAN no also.
    Now I also want to open NPS account for both of us ?

    is it possible ? please le me know ?

  67. Hi, I am state govt. Employee and I have NPS PRAN. Now if I open an account in APY, I will receive another PRAN. But as per the norms Individual must have one PRAN. Then how can I join APY? In APY application no bank is asking about existing PRAN details. Please reply.

    1. Ashish-These are typical initial glitches. Once you receive the PRAN for APY, then request for cancellation of the same by mentioning the existing PRAN. But major question, do you feel APY a great retirement product? Think and decide.

      1. Thanks for explaining in detail.
        One more question, as a govt. employee my provident fund goes to NPS. At last when I retire my net wealth which I received 60% lump sum which is my PF amount will it taxable at that time or not?

  68. Hi Basavaraj,

    My age is 30 years(i am tax payer) and my wife is 25 years

    We have applied “Atal Pension Yojana”(5000 per month) for both me & Wife..amount has been deducting for both like below

    376/- ruppes for my wife , I need to pay for 35 years

    577/- ruppes for me,I need to pay for 30 years

    i have a below questions, could u please clarify

    1) I am thinking that ..unnecessarly i have taken policy for my wife because i already have APY

    2) Is It good have a APY for both me & Wife, For one person in famaily will have a pension is sufficient right?

    3) Instead of paying amount 4512 yearly upto 35 years for my wife, i could have taken some other insurance policy for 15 years .

    Please suggest me,

    whether it is good to invest money in APY for both me & wife?


    Can i cancel APY for my wife and i will apply NPS for me ..Is it Good?

    Is it good have pension scheme, Because it is longterm?

    1. Karthik-1) Correct but not only to your wife, instead it is unnecessary for you too. Why? Because returns on this product may match to inflation but not gives you positive real return. In such a situation how can you sustain in retirement? Also, have you checked the value of maximum retirement they provide of Rs.5,000 when you retire?
      2) I already replied to it in point first.
      3) No insurance policy. Because they again ruin your money. Keep insurance to protect your life but not for investment.

      1. Thanks Basavaraj for reply, Could you please clarify below questions also

        1) You mean to say that ” There will no use of invest money in APY, i have already payed 577/- Rs for me and 752/- Rs for Wife, How can i cancel it now?”

        2) How can i plan for my retirement, Where can i invest money?

        3) Could you please suggest me where can i invest money to get good returns in short period like 5 -10 years?

        1. Karthik-1) Yes. But I think recently they provided some liquidity to cancel and come out. I am not sure whether they implemented or not. Wait for clarification.
          2) If your retirement is long term (more than 10 years or so), then I suggest to accumulate on your own by investing in equity mutual funds. Don’t run behind plans like pension or retirement.
          3) It depends on many things. I can’t suggest blindly.

          1. Thanks Basavaraj,

            Currently i am investing monthly 2000/-Rs in HDFC Mid-Cap Opportunities Fund -Direct growth, Is there any specific mutual funds to invest money for get returns more without loss.

            Will you suggest to invest money in the shares through Zeroda?

              1. Thanks Basavaraj for replying,

                1) Could you please suggest few mutual fund names like HDFC Mid-Cap Opportunities Fund , Birla Sun life ..etc for investing,
                Is there any specific funds like low risk+high returns? Could you please explain

                2) Is it good to invest money in one mutual fund company, I mean to say that for example investing money in 3 different mutual funds in HDFC alone?

                1. Karthik-1) If you already having a small and mid-cap fund then select a large cap and start investing. Bear in mind that HIGH RISK always comes with HIGH RETURN. Hence, understand your risk taking ability.
                  2) When you chose different cap of funds and all funds are good and representing a single mutual fund company, in that case I don’t mind to invest. However, it is hard to find all good funds in a single company.

                  1. Thanks Basavaraj for reply,

                    Can u suggest me which one is suitable for me APY or NPS?

                    Currently i am investing 577 monthly and need to pay till 30 years(Total amount is 207720).So after my age 60 years , i will get 5000/- monthly and if some thing happend to me, that amount will give to my spouse and if some thing happend to my Spouse also, corpus amount approx: 8.5 lacks give to nomineee i.e to my daughter.

                    Comes to APY,
                    5000/- fixed monthly,
                    We can not withdraw money till 60 years
                    There is no tax benefit

                    Comes to NPS,

                    1) If i invest monthly 577 till 60 years, How much pension i will get?

                    2) Compare to APY, Is NPS is better?

                    Please suggest me

                    1. Karthik-APY Rs.5,000 pension suffice at your retirement age (considering the trend of inflation)? Regarding NPS, it is also taxable income for you and also your money get locked up to your retirement age. In my view both are not good for creating long term goals like retirement.

  69. Hey,

    Thanks for explaining in detail.

    Can i take contributions back in chunks across years to save tax ? after the age of 60.

    So, if my yearly contribution is 4k, i will accumulate around 1 cr. Say for example i divide it across 10 years as i have to withdraw till the age of 70 years.

    so, in that case as well i have to buy annuity plan and with that be taxable ? i mean 10 lakhs yearly. ( at that time i dont know what will be tax bracket )..


  70. Dear Mr Basu,

    I am a professional paying 30% IT. Is it worth contributing 50K in NPS to save IT under 80CCD?
    Please explain.
    Thank you.

  71. Dear Sir,
    I am a working in private company. In my EPF a/c statement there is a column named “Pension Contribution”. Is it different from NPS ?

  72. Dear Sir,
    One of my uncle is an retired private employee all he invested money in Nationalized Banks , he is getting some good interest every month , but know RBI reduced or going to be reduced Bank Interest rates .So my uncle is in worry , So can i suggest him to invest on Mutual funds company , can he get good monthly returns atleast 15% of interest every month , because both my uncle & Aunt are patients .If u agree with my advice so ,which you company ,you would prefer to invest , kindly help me in this issue and i am requesting you to kindly give your valuable advise as early as possible sir ,Thanks for giving this opportunity .


    1. Narayan-They are worried about around 1% fall in interest rate. Will they sustain the volatility equity market show? If this money is so vital to them then never invest in equity mutual funds. Instead, buy a pension plan from LIC.

  73. Sir – I joined NPS some 2 years back and had a PRAN number generated. I recently joined APY through SBI and got another PRAN. I am an income tax payer.

    Will there be any problem with 2 PRAN? Is joining both NPS and APY allowed?

    Can we see APY online somewhere just like NPS?

  74. Hi sir, I am a Govt employee . I want to choose one pension product for my wife. She too a very low income tax payer . I am confused between NPS and Atal pension scheme suggest me gud plan.

  75. Gurpreet Singh

    Dear Basavaraj,

    Please throw some light on taxation of pension money. If I invest 50,000 pa in NPS, will both pension money & 40% lump-sum at age 60 would be taxable, or tax would be levied on interest earned on all my contributions.

    In case both principal and interest are taxable, then this is a very bad plan in terms of taxation.


    1. Gurpreet-When you buy an annuity from 40% of lump-sum then it is not taxed. But the annuity you receive from this either monthly/qty/half yearly or yearly will be taxable income exactly like your salary income. Rest of 60% of such accumulated amount from NPS is also taxable. Therefore, you must assume that 40% of such annuity is taxed on both principal+interest.

  76. As per quote from APY subscription form:
    “Declaration & Authorization by all subscribers
    I meet the prescribed eligibility criteria for assistance under APY and I have read and understood the terms and conditions of the Scheme. I hereby agree to the same and
    declare that the information furnished by me is true and correct, to the best of my knowledge and belief. I undertake to immediately inform the bank of any change in the above
    information furnished by me. Further, I do not hold any pre-existing account under NPS. I understand that I shall be fully liable for submission of any false or incorrect information
    or documents. I have read/been explained and have understood the APY guidelines. I further agree to be bound by the terms and conditions of provision of services under the
    scheme as approved by PFRDA/Govt. of India.”

    I am already having NPS account and even tax payer. What does above statement “I do not hold any pre-existing account under NPS”.

    Please explain.

    1. Pravin-In my view that declaration will help them for the offer of 5 years contribution from Govt’s end. Because there is nowhere they have written in eligibility conditions that one must NOT be member of NPS.

  77. Sir,
    I am a state govt employee, I have
    NPS account and i am a tax payer now I have to join APY is it possible or not ?

    1. Dr.Deepak-Sadly, there is no such pension product which we can say BEST. The only option for you is to invest aggressively (choosing a product based on your comfort and time horizon) and accumulate the retirement corpus.

  78. Nice Post.

    My query is can we open both account NPS and APY and contribute amount in both simultaneously or we have to choose anyone?

  79. you said that there is no pran number provided to apy holder but I have got two messages that your pran number has been generated one of my own and other one for my wife from nsdlpn and I and my wife have no nps account then what does it mean

  80. Hello Basuji,

    I am 30 year old married guy! Was thinking about retirement planning. Can you please let me know what are the options? Is it OK to invest in MFs via SIPs to accumulate wealth for retirement? If yes, then which re advisable funds?


    1. Abhishek-Equity investment through mutual fund is best when your goals are long term. As of now there is no such pension product which we may say as BEST. Hence, better to accumulate on your own. Fund selection again based on your risk taking ability and other criterias. Hence, I can’t recommend you readymade solution.

  81. Hi Basu,

    Thanks for the beatiful comparison done for both the schemes.

    I just wanted to know whether professionals and businessmen are also eligible for the –

    An additional tax benefit of Rs.50,000/- under section 80CCD (1B) per year (applicable from FY 2015-16/AY 2016-17) for NPS investments.

    Or is this restricted to salaries employees only???

    Thanks $ Regards,


    1. Neela-There is no restriction on this. Anyone can contribute to it. But there is still some ambiguity on it like whether this additional deduction is after completion of 10% limit as provided u/sub section of 80CCD or addition deduction is over & above the ceiling limit of Rs. 1,50,000/- as defined u/s 80CCE. But in my view it is over and above the ceiling limit of Rs.1,50,000.

    1. As per my knowledge, Investment to tier 1 NPS can be be as a single contribution per year; minimum of Rs.6000/- can be paid at once. Please clarify

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