How to Open NPS Account Online and Tax Benefits ?
Guidelines for Online Registration NPS Trust welcomes you to ‘eNPS’ ,which will facilitate:-
➤ Opening of Individual Pension Account under NPS (only Tier I / Tier I & Tier II)
➤ Making initial and subsequent contribution to your Tier I as well as Tier II account
To open an Individual Pension account online.
✔ You must have a ‘Permanent Account Number’ (PAN) and a Bank account with any of the registered Point of Presence empanelled for KYC verification for subscriber registration through NPS
✔ Link for Online Registration which you need to visit
✔ Your KYC Verification in NPS will be done by your Bank selected by you during the registration process.
✔ You need to upload your scanned photograph and signature in *.jpeg/*.jpg format having file size between 4kb – 12kb.
✔ You will be routed to a payment gateway for making the payment towards your NPS account from Debit / Credit card or Internet Banking.
After successful payment of initial contribution, a Permanent Retirement Account Number (PRAN) will be allotted to you. After online account opening process is completed,
➤ The PRAN Kit containing a PRAN Card, IPIN/TPIN, Subscriber Master Report, Scheme Information Booklet alongwith a Welcome Letter will be sent to your registered address.
➤ You need to take a printout of the form, paste your photograph (please do not sign across the photograph) & affix signature.
➤ You should sign on the block provided for signature.
➤ The photograph should not be stapled or clipped to the form.
➤ The form should be sent within 90 days from the date of allotment of PRAN to CRA at the following address or else the PRAN will be ‘frozen’ temporarily:
Central Recordkeeping Agency (eNPS)
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower,
Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400 013
Please note that registration for APY cannot be done through www.enps.nsdl.com. For registration under APY please contact your Bank Branch.
Processing of subsequent contribution:
All existing subscribers (registered through both online and offline mode) can contribute in Tier I & Tier II account using ‘eNPS’. To contribute online, you need to
✔ Have an active Tier I / Tier II account
✔ Authenticate your PRAN using the OTP sent to your registered mobile number
✔ Pay through your Debit / Credit card or use Internet Banking option.
For queries please contact : 022 – 4090 4242 or write to: eNPS@nsdl.co.in
What is National Pension System?
The Government of India (GOI) rolled out the NPS for all citizens of India from May 1, 2009 and Corporate sector from December, 2011.
The person (employee/citizen) who joins the NPS will be known as “Subscriber” in the NPS. Under the NPS, each Subscriber will open an account with Central Recordkeeping Agency (CRA) which will be identified through unique Permanent Retirement Account Number (PRAN).
Under NPS, two types of account would be available to subscribers i.e. Tier I & Tier II; Tier I account – where subscribers contribute his / her savings (may include employers contribution in case of Corporate sector) for retirement into a non-withdrawable account, and a Tier II account – a voluntary savings account from which subscribers are free to withdraw their savings whenever he wishes. The facility of Tier II account was made available from December 01, 2009 to All Citizens of India including Govt. employees and Corporate sector subscribers not mandatorily covered under NPS. An active Tier I account will be a pre requisite for opening of a Tier II.
What are the benefits of NPS?
1.It is voluntary – NPS is open to every Indian Citizen. A subscriber can choose the amount he wants to set aside and save every year.
2.It is simple – All the subscriber has to do is to open an account with any one of POPs (Point Of Presence) and get a PRAN.
3.It is flexible – Subscribers can choose their own investment option and pension fund and see their money grow.
4.It is portable – Subscribers can operate their account from any where in the country, even if they change the city, job or their pension fund manager.
5.It is regulated – NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust.
What are the tax benefits of NPS?
Tax benefit to employee:
Individuals who are employed and contributing to NPS would enjoy tax benefits on their own contributions as well as their employer’s contribution as under: –
(a) Employee’s own contribution – Eligible for tax deduction up to 10% of Salary (Basic + DA) under Section 80 CCD(1) within the overall ceiling of Rs. 1.5 lac under Sec 80 CCE.
(b) Employer’s contribution – The employee is eligible for tax deduction up to 10% of Salary (Basic + DA) contributed by employer under Sec 80 CCC(2) over and above the limit of Rs. 1.5 lac provided under Sec 80 CCE.
Tax benefit for self-employed:
Eligible for tax deduction up to 10 % of gross income under Sec 80 CCD (1) with in the overall ceiling of Rs. 1.5 lac under Sec 80 CCE.
Which document can a subscriber use as an investment proof in order to avail the tax benefit?
The print out of the Transaction Statement could be used as a document for claiming Tax benefit.
Can a subscriber get loan under NPS ?
At present, interim utilization of pension wealth (such as availing of loan) by the subscriber before exit is not allowed under NPS. However, in line with the PFRDA Act 2013, PFRDA is considering the option of interim withdrawal and, the same is yet to be finalized. For more detailed guidelines/circulars regarding withdrawal, you