The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It is a pension contribution structure that involves allocating investments in equity and debt, and it's regulated by the Pension Fund Regulatory and Development Authority (PFRDA) in India. Below are the key aspects and tax benefits of NPS:

National Pension System (NPS): Eligibility

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Any Indian citizen between the ages of 18 and 65 can join NPS. Both resident Indians and Non-Resident Indians (NRIs) are eligible.

National Pension System (NPS): Types of NPS Accounts

Tier I Account: This is a non-withdrawable pension account. Withdrawals are permitted only in specific circumstances (such as critical illness or children's education/marriage), and upon retirement.

Tier II Account: This is a voluntary savings account, and subscribers can withdraw their savings from this account whenever they wish. However, tax benefits are mainly associated with the Tier I account.

National Pension System (NPS): Investment Options

Subscribers can choose to invest in different asset classes, such as government securities, corporate bonds, and equities. They can also decide their asset allocation depending on their risk appetite.

National Pension System (NPS): Tax Benefits

Section 80CCD(1): Contributions made by an individual towards NPS up to 10% of salary (for salaried individuals) or 20% of gross income (for self-employed) are deductible up to Rs. 1.5 lakh under Section 80CCD(1), within the overall ceiling of Section 80C.

Section 80CCD(1B): Subscribers can claim an additional deduction for investment up to Rs 50,000 in NPS, which is over and above the limit of Rs. 1.5 lakh under Section 80CCD(1).

Section 80CCD(2): Employer's contribution towards an employee's NPS account is eligible for tax deduction up to 10% of the salary (Basic + DA) without any upper cap in terms of amount under Section 80CCD(2).

National Pension System (NPS): Withdrawal and Exit Rules 

At the age of 60, subscribers can withdraw up to 60% of the corpus tax-free. The remaining 40% must be utilized to purchase an annuity that will provide a regular pension to the subscriber.

National Pension System (NPS): Partial Withdrawal

After three years of subscription, partial withdrawal is allowed in specific cases such as children’s higher education, marriage, purchase/construction of a house, or treatment of critical illness.

National Pension System (NPS): Annuity

A portion of the corpus that is used to purchase an annuity is tax-free, but the pension received from the annuity is subject to income tax.

National Pension System (NPS): Extension and Continuation

After the age of 60, a subscriber can extend the NPS account for up to 10 years or continue investing without any withdrawals till the age of 70.

The NPS is a good option for retirement savings, especially for those who are looking for a disciplined and long-term saving plan with additional tax benefits. However, it's also important to understand the investment risks and read the scheme-related documents carefully. Consulting a financial advisor for personalized guidance is also recommended.