Query regarding NPS

Hi All,

I need some help with NPS. I'm planning to register for it.
My main purpose is to get tax rebate by self-contribution of Rs 50000(Section 80CCD(1B)) and employer contribution(on my behalf as per 80CCD(2)) per year.

My company has provided a link for registration. It says HDFC Pension on that page. Does it mean that they are forcing me to select HDFC Pension as POP.
I had read that we can also register directly with CRA like NSDL, KFinTech, etc.
Also, overall charges seems to be less with CRA as compared to POP:
https://www.valueresearchonline.com/stories/49119/how-to-reduce-your-nps-transaction-costs/

Please share your thoughts and any dos/donts with regards to NPS.
Also, please share any good links or YT videos so that I can educate myself further.

Thanks in Advance!

Hey Rahul!

Great to hear you're planning to start with NPS — it’s a smart move for retirement planning and tax savings. Let me break down your queries one by one:

1️⃣ About POP (Point of Presence) & HDFC Pension

When your company gives you a link mentioning HDFC Pension as POP, it usually means they have tied up with HDFC Pension as the official Point of Presence for NPS registrations through the employer.
But you’re not strictly forced to pick HDFC Pension as your POP when registering directly.
You can open your NPS account independently with any CRA (Central Recordkeeping Agency) like:
- NSDL e-Governance Infrastructure Ltd.
- KFin Technologies
Once you open with a CRA directly, you can choose your own Pension Fund Manager (PFM) and POP.

2️⃣ Charges: CRA vs POP

You are right; generally charges are lower when you register directly with CRA, because you avoid some service fees charged by POPs.
POPs sometimes charge an initial transaction fee or annual maintenance fee, depending on the service provider.
CRA charges are quite minimal, usually a fixed annual fee.

3️⃣ How to get tax benefits

Your self-contribution (up to ₹50,000) can be claimed under Section 80CCD(1B) over and above ₹1.5 lakh limit under Section 80C.
Your employer’s contribution (up to 10% of salary) is deductible under Section 80CCD(2), which is over and above 80C and 80CCD(1B).
These benefits apply regardless of whether you register via your employer or directly.

4️⃣ Dos and Don’ts

Dos:

Do choose your PFM wisely — each PFM has slightly different risk-return profiles.
Do regularly check your NPS account online via CRA portals.
Do keep your PRAN card and login credentials safe.
Do opt for auto-debit if registering independently to maintain regular contributions.

Don’ts:

Don’t treat NPS as a short-term investment — it’s meant for long-term retirement savings.
Don’t ignore the exit and withdrawal rules; partial withdrawal is allowed under certain conditions only.
Don’t miss contributions if you want maximum tax benefits.

5️⃣ Useful Resources

Official NPS website - NSDL CRA portal
ICICI Prudential NPS guide
YouTube channels:
- CA Rachana Ranade — search "NPS explained"
- ClearTax — good for tax saving with NPS
- Value Research Online — deep dive on charges and fund performance

TL;DR:

Your company’s HDFC Pension link is their preferred POP, but you’re free to register directly with CRA.
Registering directly may save some charges.
Tax benefits apply in both cases.
Choose PFMs carefully and keep track of your account.