Corporate or Personal NPS... which account should be opened? Take a decision after knowing the benefits

Corporate or Personal NPS... which account should be opened? Take a decision after knowing the benefits India-employmentnews | 10/06/2025 17:15:47

People invest in many places to save on income tax. NPS i.e. National Pension Scheme is also one of them. You can invest in NPS yourself and if you are employed, you can also invest in NPS through your employer. This is called Corporate NPS. By investing in Corporate NPS, you can also avail tax exemption under the new tax regime. Know the tax benefits of NPS.

Difference between Personal and Corporate NPS

Any eligible Indian can invest in Personal NPS. In this, you have to make all the investment yourself. On the other hand, the Corporate NPS account is for employed people. It is opened through the company. Your employer also contributes to it. According to your salary structure, the employer can contribute up to 10% of your basic salary + DA (dearness allowance). Apart from this, you can also contribute from your side.

What are the tax benefits?

Tax benefits can be availed through NPS in both the new tax and old tax regimes. Understand how?

Old tax regime

Under the old tax regime, you can save up to Rs 2 lakh in tax in NPS. Under section 80C, you can avail ₹1.5 lakh, and under 80CCD(1B), you can avail an additional exemption of ₹50,000. If you have a corporate NPS, then under 80CCD(2), the money deposited in your NPS by your employer is also tax-exempt.

New tax regime
If you are filing ITR under the new tax regime, you will get tax exemption only if you have opened a corporate account. In this, only the employer's contribution under section 80CCD(2) is eligible for tax exemption. 80CCD(1) or 80CCD(1B) is not valid in the new tax regime.

How to open Corporate NPS

For this, first, talk to your company and get approval.

Take the Common Subscriber Registration Form (CSRF) from HR and fill the form carefully.

Get the form verified in the HR office.

After this, take the PRAN number and give it to the office account or HR department.

After this, a fixed amount will start getting deducted from your account every month.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.