1 min read.Updated: 10 Aug 2020, 08:26 AM ISTAvneet Kaur
Only those subscribers who have a Tier I NPS Account can open a Tier II Account
A government employee can avail deduction under Section 80C for contribution to Tier II Account
Tier II account in National Pension System (NPS) is a voluntary investment account which aims to provide a window of liquidity to meet financial contingencies and build savings through investments. A subscriber to NPS Tier II Account enjoys unlimited online withdrawals and can get the sum credited in bank account whenever needed. For a non-government employee, contribution to Tier II Account does not qualify for tax deduction. But a government employee can avail deduction under Section 80C for contribution to Tier II Account as well provided there is a lock-in period of three years. Only those subscribers who have a Tier I NPS Account can open a Tier II Account.
Here is the step by step guide to open an NPS Tier II Account online:
Enter your nominee details and click on 'Save and proceed'.
Next you need to upload two documents- your scanned PAN card and a cancelled cheque.
Once the documents are attached, click on 'Upload'.
After the documents are successfully uploaded, make payment towards the Tier II NPS Account. You can open a Tier 2 account with a minimum investment of ₹1,000.
Next, you will get your receipt for contribution to NPS Tier II Acount.
Now you need to esign the application using your Aadhaar number. Once you provide your Aadhaar number, you will receive an OTP on your registered mobile number. Submit the OTP.
Once you have esigned your application successfully, you can download your application, put your signature on the downloaded form and send it to the head office of NSDL in Mumbai through registered post.