The National Pension System (NPS) is one of India’s most popular retirement investment options, offering tax benefits, long-term savings, and stable returns. But what about Non-Resident Indians (NRIs)? Can they invest in NPS?
The answer is YES! NRIs can invest in NPS and secure their financial future in India. This guide explains the eligibility, registration process, tax benefits, withdrawal rules, and repatriation process for NRIs interested in NPS.
Looking for an NRI-friendly pension plan? Start investing in NPS with HDFC Pension today!
Can NRIs Invest in NPS?
Yes, NRIs can open an NPS account and invest in Indian retirement savings, provided they meet the following conditions:
- NRIs with an NRE/NRO account in India
- Individuals between 18-70 years
- KYC-compliant (Aadhaar, PAN, Passport required)
- Must contribute in Indian Rupees (INR)
NRIs can invest in both Tier 1 & Tier 2 NPS accounts, but Tier 1 is mandatory for pension benefits.
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Eligibility Criteria & Registration Process
Who Can Open an NPS Account?
- NRIs (Non-Resident Indians) and OCIs (Overseas Citizens of India) are eligible
- Investors must be between 18-70 years old
- An NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account is required
How NRIs Can Open an NPS Account Online
Step 1: Choose a Point of Presence (PoP)
- Select an NPS provider like HDFC Pension
Step 2: Fill the NPS Registration Form
- Enter personal details, contact information, and NRI status
- Choose investment preference: Active or Auto Choice
Step 3: Upload KYC Documents
- PAN Card, Aadhaar, Passport, NRE/NRO account details
Step 4: Contribute to Your NPS Account
- Minimum ₹500 for Tier I & ₹1,000 for Tier II
Ready to invest? Open your NPS account with HDFC Pension today!
Investment Rules for NRIs
- Contribution Limits for NRIs
- Minimum ₹500 per contribution
- No upper limit on investments
- NRIs can contribute via NRE/NRO accounts only
- Currency Exchange Factors
- Contributions are made in INR, so forex rates may impact investment returns
- NRIs should consider currency fluctuations while planning investments
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Tax Benefits for NRIs
NPS provides significant tax advantages for NRIs under Indian tax laws. However, NRIs should check tax implications in their resident country.
- Tax Benefits in India
- Under Section 80CCD(1): Up to ₹1.5 lakh tax deduction
- Additional ₹50,000 deduction under Section 80CCD(1B)
- Employer contributions under Section 80CCD(2) are tax-free
- Taxation in Resident Country
- Some countries (e.g., USA, UK, Canada) may tax NPS withdrawals
- Double Taxation Avoidance Agreements (DTAA) can help reduce tax liabilities
Want to optimize your NPS tax savings? Get expert assistance with HDFC Pension.
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